I am a real estate newbie. I just closed on my 1st investment property a week ago. It's a nice duplex that i can actually move tenents in right away but i wanted to do a few minor upgrades to maximize the return on both units. Today i was contacted by a company who wanted to buy the property from me. After a little research, I've found out the company has bought a lot of properties and land in the area to build condominiums. Because i bought the property through a probate deal, I'm sure it will be difficult to find a deal with a $50,000 investment can return $2000 monthly free and clear. What should be the starting point in negotiations? How should i factor in the long term income i will get to the lumpsome that will be offered?
@Edward Henderson a unit of measure I have heard is five years of income. So 24k/year x 5=125K say 135 k including rent increases is where you would want to end up if you believe in the 5 yr profit deal. Start higher so they can feel good about beating you down. If it were me I'd ignore them.
Thanks @Bjorn Ahlblad
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