First Property - Offer countered

[Amaju E.]

Hello ,

I submitted my first couple offers last week and one received a counter offer for a duplex in Atlanta. The property was initially listed a month ago for 10k less and the price increased a month later to 125k. I submitted an offer at the original asking price of $115k and the seller countered at $120k. The upstairs unit is currently rented and the downstairs is currently vacant, both units fully occupied should come in at a minimum of $1,250. The vacant unit will need a light/med rehab to get it rent ready. 

I should also add that i accepted the counter offer but on second thought was thinking maybe i should have countered back with my original offer of $115k, due diligence is 8 days.

 The current plan is to hold and rent. Comps in the area of recently sold prop are around 120k -130k. I am guessing the seller had increased the price to factor in some of the repairs that will be needed.  

Can anyone please share any thoughts or advice on what I should be doing next at this stage? Or things to consider which i may be overlooking since this is literally my first property and still building on my RE knowledge.

Thanks for the help, 

Amaju

[Amaju E.]

@Account Closed

The expected cash on cash is 12%

The cash flow is roughly $250

The monthly rent is $1200. After repairs the prop could rent for $2k.

I doubt ill be able to add a bedroom. 

My long term play is to hold for at least 3-5 years

I ran the numbers as best i could and used rentometer to get a sense on what the prop could rent for after repairs. The current rent at $1200 is lower that what rentometer estimates in the area, which is $2k combined for both units