 Offer (by Bill [KY]) Sep 18, 2017 2:22 PM
 Offer (by Robin [WI]) Sep 18, 2017 2:46 PM
Offer (by Mike45 [NV]) Sep 18, 2017 3:10 PM
Offer (by BRAD 20,000 [IN]) Sep 18, 2017 11:07 PM
Offer (by Bill [KY]) Sep 19, 2017 3:14 AM
Offer (by S i d [MO]) Sep 19, 2017 6:10 AM
Offer (by Bill [KY]) Sep 19, 2017 8:12 PM
Offer (by Bill [KY]) Posted on: Sep 18, 2017 2:22 PM
Message:
18 townhomes listed for $899,900. It's been on the market for 19 mos, no price reductions. Rent roll from April/JulySept shows anywhere between $8250-$8950 with a few way under market. No financial data available. No data yet on age of roof/Hvac, etc. Curious with this limited amount of data, where your mind goes on offering price based on rent alone before you start negotiating repairs, etc.
Thanks! --24.26.xx.xx |
Offer (by Robin [WI]) Posted on: Sep 18, 2017 2:46 PM
Message:
My rule of thumb is that rents need to be 2% of purchase + rehab costs. At that price, rent would need to be $18,000/mo. At those rents, price would need to be half that. --204.210.xxx.xxx |
Offer (by Mike45 [NV]) Posted on: Sep 18, 2017 3:10 PM
Message:
Robin: +1! 2% is what I look for. --71.38.xx.xxx |
Offer (by BRAD 20,000 [IN]) Posted on: Sep 18, 2017 11:07 PM
Message:
$50k each, $472 / mo each.
Are rents low due to vacancies?
BRAD
--68.50.xx.xxx |
Offer (by Bill [KY]) Posted on: Sep 19, 2017 3:14 AM
Message:
Brad, per realtor, rents are low on about 6 units, all long term tenants. To give you an example, these folks are paying $300-$400 mo. vs market Rent, which is $525-$550. --24.26.xx.xx |
Offer (by S i d [MO]) Posted on: Sep 19, 2017 6:10 AM
Message:
As Robin and Mike45 do, I START at the 2% rule and negotiate from there.
Based on rents along, make the offer at $435,000 sight unseen, with contingencies for inspection of property and the financials, and right to negotiate price once you have seen those facts and figures. If they are interested, they'll bite. If not, you've saved yourself a ton of time.
I am in the process of buying a SFH that will have a rent to "all in" cost ratio 2.9 - 3.2% depending on what my actual rent ends up at. Those are the kinds of ATMs I like!
I'm sure you know that in commercial (18 units) properties, the current NOI & CAP rate determine value. Need to see those expense sheets/Schedule Es.
My guess is the Seller does not correctly perceive what the property is worth. Maybe he paid too much...maybe the rents used to be higher. Maybe he's delusional. That said, throw a line in the water. Bait (an offer) is cheap and who knows what might bite? --173.19.xx.xxx |
Offer (by Bill [KY]) Posted on: Sep 19, 2017 8:12 PM
Message:
Thank you all --24.26.xx.xx |
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