How low can I go on an offer for multi-family?
I’ve been looking for multi-family properties in the Tampa Bay Area and every property I analyze cash flows under 6%. I’m at a point where I want to start making offers at what I think is reasonable (closer to 9% cash flow), but in some cases that’s 15% under asking.
Specially, one example is a triplex in great shape and a good area for an asking price of $375,000 and it would only make sense if we could get it for $300,000.
I don’t want to waste the time of my agent or anger the sellers by going unreasonably low. What do sellers / agents consider reasonable?