Assistance On A Deal In Progress!
Hi Everyone,
I am hoping that you RE Gurus can help this newbie on his first deal. I finally found the right property which the numbers work but the seller rejects offer without counter offering which is aggrevating. Here is the scenario in case:
Asking price: $255k
4-Units which have been totally rehabbed.
Taxes: $7500/yr
Total rents are: $3100/mo
Tenants pay all utilities except water which is $45/mo.
I also pay scavengar which is $35/mo
Im offering $235k + seller paying closing costs which are $2800. Im also putting down $1k as ernest money. With my 80/20 loan at worst case scenario - paying at full price - I make a little over $600/mo net profit. This is even after all utilitie, taxes, 5% vacancy fee, maintenance fees have been factored in. I used 5% vacancy = $50/mo and maintenance fees = $50/mo.
After righting up the contract the seller just declines the offer without a counter offer which is aggrevating, I would of thought he would of counter offered with something. He says he is motivated since he has to sell this property because he has another deal in the works which he needs to fund by selling this 4-unit. So I decided to come in a little stronger by offering $245k abd $2k as ernest money to make him believe Im serious which I already am. Is there anything else I should do or something that I should not do on this deal. This property is very nice and basically maintenance free since it has been totally rehabbed. Any help on this deal would be VERY HELPFUL since I would like to put together my first deal. Thanks in advance.
Sean
Comments(0)