Hi everyone. I'm 8 mos. in owning my first owner occupied home with fha loan. Woohoo!
The couple that sold me my home have two other homes they want to sell-1 duplex (they use as single home and I'm sure it needs rehabbing/upgrading) and a triplex (2 apts. rented). I want to offer for both. They don't want to use a realtor again. They prevously listed for $70,000+ each.
Any ideas on what I might offer?
I've done alot of reading on Bigger Pockets and am very grateful for the tons of advice and education.
Make an offer that makes sense for you in terms of cash flow.
How much are they renting out for?
You need to know what the units are renting for and what prices are for other similar properties in your area before you can make an informed decision about offer price.
See if they'll carry back some of the financing. So if they're going to sell for 70k, ask them if they'll finance 20% for 5 years. Then get a local bank to do a portfolio loan at 70% ltv and you could take each one down with 7k apiece......
Assuming the properties cash flow, you should be able to replenish that fairly quickly.
On the triplex. Unit 1is a 3 bdrm. -$550, unit 2-1 bdrm. $500. Unit 3 empty estimated at $500.
The duplex will be empty once owners move. Based on a couple pics it needs upgrading.
Thank you Aaron Klatt and Mike H. I really appreciate everyone's advice.
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