Updated about 6 years ago on . Most recent reply
Rent way higher than market value
I'm brand new to buying homes. I'm in the Chattanooga, TN market btw. Here's what I've seen more than once. A house that rents for $850 plus a mobile home that rents for $500. The market value of the house and land to a prospective homeowner is about $70k. The market value of the mobile home is about $15,000. But because the seller has $1350 in income, he wants $125,000 for everything. He bought it 2 years ago and has about $80k invested. Can't get myself to even offer him $100k. Am I not thinking clearly here? Thoughts are appreciated.
Most Popular Reply
Don’t overpay just because the seller wants to get a premium. You already know the market value is $85k give or take for both properties. Your offer should be less than that as you are an investor and not in the business of paying full market value unless you love the deal and it still pencils out but no matter what you should stick to your numbers not his.