Help With First Deal
I am working on my first RE deal and would like some advice. Duplex listed at $115K. Rents are $1425/mth section 8. One side vacant for 10 mths tenant just evicted from other side. I offered seller $96K (75% of appraised value of $129). Seller came back at $110. I am unsure of vacancy b/c it has been empty so long and is now completely vacant. It will cashflow at 110, but the vacancy is a concern. Am I unrealistic at $96 or is the vacancy a valid concern?
Vacancy has been a concern for investors I have helped. maybe the condition of this apartment turn prospective tenants away. Maybe the area is not as sought after. You need to do some homework and find out how other similar units in the area are doing as far occupancy rates and what others have sold for.