Hello BP community, I’m looking for some tips and advice. I have been interested in using a strategy to purchase a new home and rent out my current home to get started in acquiring SFRs. Today, I stumbled upon a potential off market deal. I found a home that the owner is now incapable of maintaining, and has been moved to assisted living. The home has not been put on the market yet, and won’t be for a week or so. The home is rumored to be listed at around 10k-30k less than the current comparable homes in the area, and all it needs is cosmetic modernization. It is a very desired area, with a rapidly growing commercial presence and rapid appreciation. The advice I am seeking is how to move forward. I don’t have a dedicated RE agent, and haven’t spoken to the listing agent yet. I want to be fair in the offer. I don’t mind offering asking price in order to secure the property, and because it is already including equity in that price. I want to increase my chances of success as much as I can without insulting anyone with a low ball. Do you guys have any advice as to what my next steps should be, and what you would do for the offer? Anything would help. Thank you!
It appears you have an inside track with the owner. Find out what the house is currently worth in its current outdated condition. Then subtract a discount (10-20%), and make your starting offer. Ideally you want to buy the house with equity already in it.