Full asking Price with large seller concessions?

[Greg M.]

Hi all!

 I'm looking at a triplex on offer @ $135,000.  Rents for $2000 a month full occupied, and has not had a single vacancy in 7 years.  Literally not one month in 7 years. Tenants pay all electric, gas, water, and trash.

The building itself is 200 years old next year, but everything has been updated in the last 7 years, to include all big tickets such as roof, furnace, and electrical/plumbing.  

Taxes= $2500 a year

Insurance= Assume $800 a year (not sure, i have a 6 unit for $2200 a year but residential should be less right?)

10% for management = -200 (month)

10% for repairs/maintenance/CAPEX= -$200 (month)

10% for Vacancy/CAPEX= -$200 (month)

leaves $1400 a month for DSCR

full price - 20% Down +taxes + insurance @ 3.5%/30 years = $777 PITI (round up to $800)

leaves $600 a month cash flow.

This deal meets my criteria, so my goal now is to figure out how to have as little out of pocket here as possible.  What I'm thinking is offer full price by request 16% sellers concessions, 10% for closing costs + part of down payment, 6% for repairs/cap ex (new paint carpets etc)

Would this work?  Has anyone ever offered OVER asking price, so instead offer $145,000 maybe %20 sellers concession etc?

Again my goal is to try for as little out of pocket as possible on this, any creative ideas?

[Wayne Brooks]

Talk to your lender as conventional won't allow those amounts of concessions, or down payment assistance.