How Much To Offer?
There is a duplex in the North part of a major city nearby. Neighborhood isnt the greatest, and the rents are section 8 i believe.
Asking price is 239k and the seller bought it 2 years ago for 280k. They own 5 properties and are all being ran by a Property Management company. Which in turn is making them neg cash flow every month since they owned it.
They had it listed from 270k for the past few months and have been lowering it now to 239k. I talked to the owner and she told me that they would pay the difference of the loan to pay it off.
Total rents are about 1800/mo gross. Insurance is 1200/yr and they have listed the annual repair expenses to be 3600/mo.
What would be a good offer price to make it worthwhile to buy it.
I would buy it 100% n/o/o with 728 scores. Stated.
Seller is very motivated.
Thanks for the answer, thats what i wanted to hear.
The renters pay for all utlities. Owner pays for maintnence, tax, and insurance. I myself will not use a management company.
I am the type that will wonder myself also why hasnt anyone hopped on this deal. I mean she did buy it for 280k 2 years ago but WHY..? WHY isnt it selling is my first question to myself. I also would not like to refi and cashout because payment would be too high and negative cashflow would take in effect and I would not want to be in her situation. I might offer real low as it has been sitting for awhile. All city inspections have been done and the unit is actually in top notch condition.
Would it be wise to refi-cashout my current townhome on an option arm, and then use the funds to put 20% down on the duplex? My townhome would be on an option arm and I have a renter lined up for 1500/mo plus utlities for the townhome. (I am buying a new property for primary residence)
Check for referrals from fellow investors from a local REIA-type group...there are many listed here in the "Groups" link above...
[addsig]
My properties are LLC investments and use State Farm. Im in Delaware but dont know why that would mean much. Have you tried them?