Negotiating with Duplex Owner

[Greg Todrank]

I have toured a property that I will more than likely make a offer on -- once my agent comes back with some market analysis.  The property is priced around what it will appraise for -- I believe (as does the State of Wisconsin).

The duplex has both units occupied and the owner manages the property -- and others.  It has good cash flow and I am a buy & hold investor.

My question is around negotiating a price.  I am trying to "make money when I buy".  Would it be worth a lower offer on price to get some equity up front and ask the current owner to manage the property as a carrot for the discount?  Is that just silly and setting myself up for failure or genius?

[Mark Allen Kenny]

It depends on what the seller wants.  I would guess that if the owner is self-managing and wants to sell, they probably aren't interested in self-managing anymore.  But with that said, ALWAYS try to negotiate a lower price.