Hello everyone,
I am looking for some direction on what to do. This is my first deal. I am currently looking to purchase a three family home. We have been pre-approved for 400k and the listing price is 400k. We want to make an offer for 390k on the property because it needs some rehab. I have done some research and found the same type home next door sold for 425k. What should be my next steps. I am not currently working with any agents on this.
Have you done a cash flow analysis? The ONLY reason to buy an income property should be to make some money!
I would not pay $390K for any property that was worth $425K. If I can’t get 30% equity at closing, I don’t do the deal.
I’d suggest that you forget this “deal” and start with some education on REI.
Good Luck,
Mike
Thanks Mike,
Its going to be owner occupied. We are looking to buy it between between three family members. We are all currently paying over $1000 in rent. Would it stse to still make sense to start here.