How low do I go on an offer price?

[Spencer Gonzaga]

Hey BPers,

Hoping to get your thoughts on a potential 1st deal!

I am looking at a property for a househack located in a B to C neighborhood that has been on the market for over a year now. It is a 1900 sqft 4 bedroom/ 3 bathroom interior rowhouse built in the 1900's that has been recently updated. The HVAC and water heater seems pretty new as well as the roof. Listing price was originally 310k but has been dropped to 250k. My realtor gave me the CMA noting that it was well below the market price with 260k being the lower end, however I am skeptical of the CMA since the quality, the finishing and layout of the listed houses were vastly different. It's like comparing Disneyland park to your local theme park. Personally, looking at the prices of house sold within the last year, I would say the value of the house would be between 240-260k.

I am looking at offering ~ 20% below asking price around 200k and I am hoping to go as high as 220 to 230k.

Calculating with a possible purchase at 230k:

Looking at the numbers using the BP rental calculator, I could rent out the 3 rooms for 700 for both bedrooms with shared bathroom and the 1 bedroom with private bathroom for 800.  I am occupying the 4th room.  

Potential income: 2200/ month

PITI for purchase at 230k: 1400

Potential expenses without utilities: 600 (renters will be covering utilities)

2200 - 2000 = ~ 200 cashflow

CoC ~ 10% on a 5% downpayment and 5% closing cost ~ 24k total

Would appreciate your feedback!  Thanks!