Should I hold firm or negotiate this deal?
We put an offer in on a property yesterday and we're waiting for the seller to "run numbers" and get back to us (tomorrow morning). My plan was to hold firm at our offer price, but now I'm wondering if that's the best idea. And it's not that I'm emotionally attached to the property - I'm just trying to determine if it makes sense to go any higher. I am prepared to walk away if that's the prudent decision.
FYI, this is for a Buy and Hold, not a flip.
Here are the vitals - let me know if I have missed anything:
Asking price: $100K (this is an FSBO, I am working with a buyer's agent)
Our offer: $90K
Estimated Repairs: $5K
Closing Costs: < $1K (we are paying cash)
All-in: $96K
ARV: $125K
Estimated Rent: $1,050 - $1,150 (but based on rental comps, $1,050 is on the very low end)
Property Taxes: $1,178/yr
Insurance: $750 - $850/yr
The property is in a great neighborhood with pride of ownership, excellent school district, minutes from shopping, a major state university, etc.
We are in a fairly hot market and the 2% rule here doesn't seem even close to achievable. It seems that in our area (premium area, suburb north of Atlanta), if you're above 1% you're doing well. This would be our first deal, which is why I'm open to any advice I can get from the BP community.
Please let me know if I can provide any more information and thanks in advance!