Okay my dream is to improve my neighborhood. There is a APT complex across the street and by complex I mean a 3 to 5 unit building with a house on the lot. I want to buy it and fix it up and improve my neighborhood. BUT its not for sale and they have lived there since day one. Now the 2014 market value is 238,796 for it all. I was thinking of offering 239,000. My question is would this be a bad move or good move. I don't know what rent is there but I think gross profit would be 36000 a year and probably need a loan at no more than 10%. How should I proceed with this and do you think this is too far out of my reach for me. I would love all types of takes on this. Thanks Jon
The first rule of negotiating is to never give the first number. Find the owner and ask them what they would take for it... If they come back with an unrealistic number you can walk away if they come back with a good number you will be in a better place to determine the quality of the deal.
My apologies about the slow reply. Thank you I am not good at all about negotiating I will remember this and use this once I am ready to confront them. I don't want to offend them or make enemy's. Thank you for your help
By the 2014 "market value" you mean the tax assessed market value? If so that has no bearing at all on what the property is really worth. You'll need to find comparable properties that have sold and see what it's really worth.
You don't even know how many units, what the rents are or what the expenses are and you're guessing what the gross profit is? Contact the owner, see if the owner wants to sell, if so get more information from the owner, do your home work, and then make an offer.
Well it is pretty small unit I has 3 units and a house that owner lives in. I talked to her briefly and the rents go for 600 each. But she only rents to family she said. I was just trying to make friends and conversation with her but she did not have much time so I am looking to build a rapport with her. I just want to try and have all my ducks in a row so I can be ready to pull the trigger if she is willing to sell. Thank you for the info.
Her comment that she only rents to family tells me that she is very unlikely to sell. For her, it's not business, it's personal.
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