Updated over 8 years ago on . Most recent reply
Hey, making an offer tomorrow, would appreciate BP opinion.
Hey, here is the deal analysis data:
State of CT , duplex, 2200 Sq Ft, 1900, updated vinyl siding, 15 year roof is half way through.
Basic elements are good, foundation is solid, no cracks or visible leaks. Layout is nice and spacious.
1st unit is a 3 bedroom, 2nd unit is a 2 bedroom ( rent estimate by an experienced and investor oriented Real Estate agent is 1100 and 900 correspondingly)
Does not need any major repairs besides new furnace ( and oil to gas conversion) , just some updates, conservative estimate of rehab is 18k for both units ( including 4k for re-winterization)
It is a REO and cash offers only. 30 DOM. ARV is 165, but being very conservative I estimate 150k.
Current price is 90k, after running BP calculator ( both flip and rent as an exit strategy), looks like 80k would make it a good deal. We are offering 77.5 to leave room for negotiation.
What do you think? Big thanks in advance for input!
Most Popular Reply
Many (but not all) REO situations I have been involved with don't negotiate. They just take the best offer, or will ask for best and final offer if multiple bids. I would say just offer what you are willing to pay. If they ask for best and final stick to your offer. But if they do just take the highest bid don't risk losing a good deal when you would have been willing to pay a few thousand more and didn't offer it. I've been there and kicked myself for not putting my best offer up and wondered if I would have gotten it. Also, if $80k is where you want to be, consider offering $80,500 in case others have $80k as their bid.