I was approached with this "deal" below.
"I am selling our fourplex for health reasons ($335k). It has always been fully rented. Separate water meters on each unit so tenant pays all utilities. Needs roof in the future ( I have two quotes from licensed roofers for 14K)
Rents: 725, 725, 700, 700 = $2,850.00
Landscape $75.00 month
I think the price is too high but thought there is an opportunity for creative financing. At first I thought owner financing would be a good possibility until I realized the seller has health problems. I interpret this type of motivation as wanting cash and not cash flow which he/she already has. Any thoughts?
@Joe Mercer , don't negotiate for the seller.
"Health reasons" might mean they can't deal with the day to day management, but would love to still have some cash flow from the property. So, I'd definitely consider offering terms that would work for you and see what response you get.
Seller financing doesn't address asking price or repair issues. $350K all in for $2800/rents is not a good deal. It's not a good deal by my standards at $300K.
Don't worry about creative at this point. Focus on seller motivation and the numbers first.
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