I found a two-unit property that I've analyzed over and over and I still think it seems to be a pretty good deal (based on needing $100+ per unit, with 12% ROI - courtesy of Brandon Turner). It's an REO property that needs some work, so I doubt you could get a conventional mortgage (maybe a 203k, but I can't afford the downpayment). I was hoping to BRRRR it, but unless I could reduce the purchase price to $95k the refinance wouldn't cover the purchase and rehab. So...
Purchase: $109,000 (listed price, buts it's fallen out of contract 3 times - is that enough to motivate the seller to reduce the price?)
Rehab: $50,000 (seller's agent information)
Rent: Both units combined should rent for $1800/month (could potentially be upwards of $2200 with higher quality rehab)
Monthly cashflow = $470
(see photo of analysis for additional info)
meaning... If I find private money for the purchase, I would need a partner for the rehab or downpayment... how would you structure a deal like this? Would it be possible with these numbers? How do you find someone interested in this? SOS!
Are you involved in your local REIA? I would take your deal there. You may find someone who can give you advice or, better yet, someone interested in partnering with you.
As far as your offer, it's up to you to decide what you are willing to pay. And then you need to stick to that number. Don't worry about seller motivation. Worry about you and your number.