I would love to have some input on a REI op I have.
I have opportunity to buy 3 rental properties from my siblings but I’m unsure of the price I should pay. I want to be fair but don’t want to overpay. Market value of homes $160k (+/-) - we’ve got crazy estimates for the properties from very low to very high. Homes are SFR, in a south GA (fairly depressed market). We had one of the properties on the market for 6 months earlier this year - listed at $79k, dropped to $60k over a couple of months and still not a single bit of interest. We had listed with realtor, not FSBO.
What is a good purchase price for me and still fair to my siblings as this not a “make a killing” deal?
Things I’ve considered -
- Cost of realtor commission if we put on market
- No guarantee of sell within any time frame
- Bonus for them - they get guaranteed purchase of all 3 properties without doing any work or waiting.
- Risk - all mine, to keep rented, may or may not sell in future for what I pay now
- Bonus for me - I’ve managed the properties for the past 4 years so I know they are in good shape.
TIA for your replies.