Rents are low compared to asking purchase price - what do you do?

Rents are low compared to asking purchase price - what do you do?

Member since 2019 · 14 posts · 6 votes

Hey BP! I am a first time investor still looking to get my first MFH & I need your professional advice!

Example is I am looking into a duplex (3/1 & 2/1) asking price $350K & total monthly rent is $2500 combined. It is in a desirable/safe area with plenty to do nearby.

What do you do in your experience when seller is asking high price compared to their current rents? The #s do not make sense at this asking price. However, when I go on rentometer, 2 BR are showing $1594. How do you go about this property in terms of offer? Do you give your offer based on current rents or potential? 

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  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Stevan Radojevic never pay for potential rent or appreciation etc. make an offer based on your numbers, see what happens

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