Duplex in MA

[Dan Smith]

Hey guys,

I went to an open house today for a duplex and my Fiancee and I really liked the place!

We think we want to make an offer on it, though we want to make sure we are being intelligent about it.

(I'm nervous as this will be the largest purchase of my life to date!)...

The seller is asking for 349k.

Through research I've done, I'm going on the assumption that with both units rented, I will look at 2600 per month in rental income.

A big question I have is how much lower than asking price is expected?  I realize this must change on each house, but is there a general rule of thumb in today's market?

We're also financing this with an FHA loan, so 3.5% down.

I know I'm not providing a ton of information, but I'm anxious and scatter-brained at the moment.

I'm happy to provide more info, I just don't know where to really start here...

We plan to live in one side and rent the other side, with the hopes of moving out in a few years and keeping this rental property for passive income.

[Rich Hupper]

Yea it looks like it is very good condition so FHA will work. 3.5% down you would be looking at roughly $2100/m principle and interest if you pay $349,000 for it.

Two bedroom rentals in Haverhill go for roughly $1300/m +. If you like the location I would definitely submit an offer. Your tenants would be paying for more than half the mortgage. 

Are you currently working with a buyer's agent? Let me know if you want help figuring out a number to offer. 

They are holding all offers until tomorrow at 6pm which makes me think they are anticipating multiple offers.