Finally - rental #3 under contract

[Bryan H.]

So after making offers all year and sticking to my numbers, we got #3 under contract today. It's 1054 sf, 3/1.5, 2 car garage, nice finished basement

I offered $77k and they countered with $83k. Then while negotiating, they said it's a multiple offer situation. I stayed at $77k but offered $5k EMD and provided approval for $120k loan. I hoped they would see I am qualified and I was committed to making this happen. A couple days later, they came back to me and countered $83k again. I was wondering what kind of BS they were trying to pull. Anyway, I came up $500, said take it or leave it. Glad they took it, because I would have gone to $80k.

Asking $84,500

Offer $77,500

Closing Costs (est) = $3000

20% down - $15,500

$62k mortgage at 4.875% = $327

Taxes = $180/mo

Ins = $40/mo

PM = 8%, $96

Reserves = 25%, $300 - did this to meet 50% rule

Rent Est = $1200

Cash Flow = $257/mo

NOI = $3083

ROI = 16.6%