What should I offer and how?

[Josh Baker]

Looking for some advice on a potential deal. Specifically I’d like to know how you would present the offer I have in mind based on the information below.

I am a newbie.

4 unit class B multi-family in a class B location (close to downtown)

List price – $299k. The price I have in mind is $271k

Comps are $250-300k

I'm house hacking this one so I can use FHA.

Current rental income is $2800 / month for all four units. All of the units are currently rented.

I plan on raising the total rent to $3400 (it is currently under priced)

I plan on putting $5-10k into rehab

At the $271k price I’m looking at an estimated -$26 cashflow loss while my wife and I are living there and a $355

cashflow gain when we leave.

$391 doesn’t seem like much so I may put one or two units on AirBnb. Similar units in the area typically pull in $500 more per month on a short term basis vs. long term

The seller purchased the house 1 year ago for $210k

I’m inclined to offer $265k and see if the owner counters. I’d also appreciate any feedback on whether this is a smart first deal.