What would be your top dollar offer for the following property?

3 Replies

Hey BP - 

Looking for some advice on what would be your max offer for the following property.  Here is the basic numbers: 

Asking Price $85,000

3 Unit: Unit 1: 2 Bed 1 Bath    Unit 2 & 3 1 Bed 1 Bath

Unit 1 Rent: $600

Unit 2 Rent: $500

Unit 3 Rent: $500

Total: $1600 mo.

Expenses (Monthly):

Insurance: $40

Water: $95

Lawn/Plow: $40 (Small yard) Would actually mow this myself but still budgeting a small amount.

Taxes: $210 

Repairs: $100 estimated - property is very well maintained. 

Management Fee: $0 Self manage

Tenants pay electric & heat source is electric. 

Total Expenses: $485

I have to have my best and final offer in asap and I do not want to lose this over a few dollars.  What would you offer as your best and final? 

As always, thank you for the help and input!

Jamin 

Why not offer full price? I don’t know your market and you likely underestimated your expenses, but in a lot of places 85k for 1600 in rent and about 500 in expenses would be a good to fantastic deal these days. One unit covers your expenses, one unit covers your mortgage, and the third unit is profit. Consider that people who use the 1% rule should be willing to pay around 160k for 1600 in rent.

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