I offered 39,000. What do you think of area?

5 Replies

     I just offered 39,000 with owner finance on this duplex (7517 Mettetal st Detroit, MI). The cashflow looks good I think it would work even at the asking price of 49,900, They are offering owner finance at 7% amortized over 10 years with 10,000 down. What do you think about the area and appreciation there? I made it contingent on inspection and title documents. Is this a newbie mistake?      

I appreciate your input in advance, Nigel

This is a good area and i have some friends who has bought some properties in this area. My question to you is since and i'm assuming your not from Michigan, do you have reliable contractor to get the minor jobs done that is needed? Thats the big difference on how soon can you put this back on the rental market. 

Originally posted by @Nigel Ford :

     I just offered 39,000 with owner finance on this duplex (7517 Mettetal st Detroit, MI). The cashflow looks good I think it would work even at the asking price of 49,900, They are offering owner finance at 7% amortized over 10 years with 10,000 down. What do you think about the area and appreciation there? I made it contingent on inspection and title documents. Is this a newbie mistake?      

I appreciate your input in advance, Nigel

   I had my realtor send me the info a few days ago on this property and I had planned on acquiring it. So you might have some competition but waiting on my other two properties to close. I am not 100% sure about the area but it looks like a decent deal if both units are occupied. Word of the wise for a newbie never put the address until you closed you never know what might happen and I now know how to beat your deal. Not saying I am but run it through the calculator to get a better idea.

    Wow small world! Your right that was a strategic mistake on my part. Its my first offer so im just learning all the negotiating dynamics. How do you close on multiple properties at once like that? Are most of your properties on the outside of the city or within it?

Thank you, Nigel

@Nigel Ford hello, Nigel! I’m a investor and realtor. I was personally monitoring this property and was disappointed when I seen it go pending in the mls this morning! This was my favorite 2 family flat currently listed in Wayne County. “825 a month!!”

I personally love 2-4 units in my market.