Updated over 4 years ago on . Most recent reply
Help Analyzing a Deal
I have a STR that I'm looking to buy out of state. It was listed for 100k I offered 75k he countered with no lower than 90, I offered 85 and he said 87.5k. my partner thinks if I stay firm at 85 he will accept but I'm afraid to lose the deal. Do I risk it for $2500 or just accept and sign. My rough calculations are negligible but he doesn't want me to leave money on the table. I'm not sure what to do.
Also, first time analyzing a STR, do these numbers look ok (the 15k rehab is rolled into the loan)
Most Popular Reply
As long as your income numbers are decently accurate seems like a great deal. I wouldn't stress over $2,500 with a 71% projected CoC return. With that said, the seller did already come down twice so it seems like there is a better deal to be had. What you need to do is try to get the seller to negotiate against himself before you throw out your final number. Chris Voss talks about this in Never Split the Difference. Highly recommend.