How do I negotiate this duplex without scaring seller away
Hey BP, Ive finally found a small multifamily here in the Hampton Roads area Virginia. It's a small duplex built in 1953 that is in very good shape. I plan utilizing my VA loan and owner occupying for the required year.
My problem is that I'm not sure what to offer. I want my second unit to cover the mortgage. I know that the section 8 max for this type of unit will be $1,200.
In order to get my payment at $1,200 or lower without putting a l down payment I know I have to get thay purchase price down. We are gping to ask the seller to pay my closing costs. I don't want to make an offer too low that will scare him away.
Asking price: $224,900
Interest Rate: I have a few lenders battling it out but I've gotten quoted as low as 3.5% with no origination fee. At this rate and asking price my payment would be around $1,400 give or take.
Repair Costs:$0 so far. A turnkey propertt as of right now. The inspections may give me some more negotiation leverage
Owner Expenses: The water is the only thing not metered seperately. There are separate water heaters but the cold water isn't seperate between the two units. I thought about splitting the water in half every month but there's got to be a better way. Adding a meter with the city will be too costly.
Sorry, I tried not to make this post too long. Thanks in advance for any input.