Rural 4plex with no comps

[Darson Grantham]

Question: I’ve identified a 4plex property in a small town (10,000) people. There are no comps in the area but I know this town is stable with many varieties of businesses making the economy turn. The rents come in at 3100 total and the landlord pays utilities of $550/month when all units are rented. I have all the leases and have verified rent amounts. There are two much nicer and 2 bd 1 bath duplexs for sale in town on the market for $150k How do I make a reasonable offer on the 4plex? The owner has it listed for sale by owner for $154k

[Antoine Martel]

Make them an offer where the price makes sense for you and hits your cash flow number.

Then just make sure you have a financing and appraisal contingency in your offer so the bank can do an appraisal and make sure the property is worth what you're paying!