Dear BiggerPockets community,
I am looking for feedback on a just listed four family property in a less than desirable location (C neighborhood) with some criminal activity. Building is 60 years old but in decent shape, roof to be replaced in 5 or so years.
Each unit is two bedroom at $550 rent/mo - fully rented, separately metered. Tenant only responsible for gas/electric. The property is listed at $110,000 and I would NOT need to do any immediate rehab. However, it is in a flood zone so insurance would be higher. Financing would be 25% down payment plus 30 year mortgage at around 4.5%. At this time, the current owner is not providing expenses, vacancy history, tenant details, repair history, etc. I am sure once we made them an offer that their answers would be more forthcoming.
I did find out that this property is being sold due to a dissolving partnership and the price is negotiable, but not a fire sale. Also, the current owner bought this property for $70,000 in 2013.
Based on this and below information, I was thinking about making an offer of $80,000. What are your thoughts, BP? Is this too low/high? What else should influence my offer? I look forward to your responses.
Information from listing:
Information from WinGIS:
- Offer whatever you want, there is no way to tell if they will accept it, counter, or reject it. So might as well see where it goes with negotiation. Also determine your walk price and stick to that. good luck!
Thanks for the feedback @Brie Schmidt , however, the walk price is what I am not sure about.
Based on the information I have provided above, what would your walk price be? I do not want to overpay as I cannot count on appreciation in value for this property due to the area.
There is not enough information for me to determine that. I don't know your area and what the market conditions are so it is not responsible for anyone who doesn't know the area to tell you what to do.
All I can say is that if it is a bad area I would run my numbers conservatively
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