One more offer to brainstorm

3 Replies

Hi Everyone,

Spoke with a seller that recently retired and is looking to move to Florida. Here are the numbers:

Subject Property:

3 BR / 2.5 BA Townhouse, built in the late 80s
Mortgage Balance: $165k
Monthly Payment: $1,867
($1,610 (PIT only) + $83 insurance + $74 HOA + $100 in estimated utilities.)
Potential Upgrades: Almost none, estimate $1,000 for paint/carpet, but it's good as-is.
Seller's Asking Price: $348k

I searched for similarly sized townhouses in the area that sold in the past 90 days, due to lack of comps, and I got an average of $265.5k. I worked backwards from there to include acquisition costs, sale/listing costs, repair costs and my profit and I've come to an offer of $205k (or $184k if I go with a hard money lender.)

(Other townhomes in the area have sold closer to her asking price, but are generally larger SF units and have more bedrooms and/or bathrooms.)

The seller is quite adamant on her price and is willing to go as low as $330k, but that's it.  There isn't a set amount of money she wants because she's got enough in the bank and isn't worried about living expenses.

Thought about taking the subject-to route, and depending on the source, the rental market says I can rent from $1,600 - $2,000.  Like my other post, I don't see much cash flow.

I'm hoping I can get some help/insight with coming up with a couple more offers that can be a bit more enticing.  This seller isn't highly motivated to move, but I'd like to get in front of her with an offer before she hands it off to a realtor in a month.

Thanks for the help, BP!

I don't know where you are getting these properties but you should be able to discard them in about 5 minutes. I would suggest that you not concentrate on the properties but look for motivated sellers first.

Good Luck.

Bill

Jose

From what you've shared, this seller isn't motivated or willing to budge a bit. You aren't even in the same ballpark. Move on to the next one.

Ok, thanks for the advice guys.

Get the Ultimate Beginner's Guide

Sign up today to receive the popular eBook for free!