I just put in my first offer for a multi family property and the seller accepted. Original asking price was 84k, they accepted 72k. The property was an estate sale and the building was vacant 20 years. Any advice on what to look for or how to analyze this deal? I kind of jumped the gun on this one because it was in an up and coming neighborhood and the broker said it would go fast. It’s two 1bedrm apts in north college hill, Cincinnati
You are analyzing the deal after getting an offer accepted? Sorry, that is the wrong order.
A property that has been vacant for 20 years is NOT one for beginners. There is a good chance the best use of the property is to tear it down. If not, it is likely to require a boatload of cash to bring it back to life.
Do you have an inspection period or another contingency that can get you out of this deal? Hopefully you do not have any significant earnest money at risk. (Although your reputation may be.)
Please get help from someone that knows what they are doing before you go a step further.
@Greg Scott hey yes it’s subject to inspection and appraisal nothing is locked in I can still get out.
Brokers always say the property will go fast. That's the #1 marketing line used by every listing agent on every property. Some times it's true and sometimes it isn't.
I agree with everything @Greg Scott has mentioned is his reply. If you are unable to find a local investor to partner with on the deal before your contingencies are up, then I would bail on this deal. You will burn a bridge with the listing agent, but that's better than doing a bad deal. Let this scenario be a learning opportunity for you.
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