How to negotiate in buying two properties

[E Schemanske]

Hello all! I found these two condo units for sale that are in the same complex and I am really interested in buying them. I do not have any experience in investing and I wonder if someone could give me an advice on how I can negotiate the price down. Both units are owned by one seller and it cost 75k/unit. Since I want to buy the 2 units together, what is the reasonable offer for these units? It's located in Metro Detroit and is very accessible to everything. Unit 1 already has an existing tenant. In this market, is it bad to offer 10% below the asking price? In your personal experience, how do you negotiate?

[Jim Pellerin]

First, you need to do some homework. Find out why he is selling them. What are the comparables for similar units? What is the rental history? What condition are they in? How long have they been on the market? What are market rents and will they cash flow after ALL expenses are accounted for? If everything looks good, don't be embarrassed about offering too low. Start at $120K for both. Also, tell the owner you are in the market and are anxious to buy something and that you are looking at other properties. Maybe the time-sensitivity angle might help you in your negotiations. My best deals come when I'm prepared to walk away.