First deal

[Kyle M.]

Hi, I am looking to make my first deal on an owner occupy. Goal is to live there with an FHA and rent it in the future. Second option would be to sell it at a surplus.

Property List: $120,000
3br/1ba (standard for my area)
Median rent for 3br: $1100

Property is in good condition and the area is nice and upcoming. I understand that this is not the best from a "deal" point of view. The best deals are in areas that I do not want to live (sfh and multi). However, I want to take advantage of a FHA loan. This property seems to have a good combination of being a decent deal in an appreciating neighborhood that I want to live. So enough with the bad justifications...

That being said, I'm not a complete softy and I want to negotiate to get the best deal possible. One problem is that this property has oil heating which I have read is like a 3-5k conversion to gas. How do I negotiate this into the offer?

I am really looking for advice on where to start with an offer. What should my initial offer be given that there are no unforeseen problems with the property? When we get close to a deal should I negotiate seller to pay closing costs/gas conversion?

Any advice would be great! My goal is to get this as low as humanly possible and this listing has dropped from 150k to 120k in 10k increments for the last three months. Shows me that this seller is motivated, thank you!