Possible Opportunity in Multifamily investing

[Robert Duncan]

Lets jump right in. So I have wholesaled some deals here in Connecticut (Hartford Area) and I've come across a vacant 6 unit building with (two 3 bedrooms & four 2 bedroom apartments) it has been empty for almost 10 years now. The owner owes around 49k in back taxes and 10k in City liens. The potential is tremendous. The property needs everything (Top to Bottom) estimated repair cost is around 150k. Everything has been removed except the framing. 

Now the owner doesn't need to sell, he wants to sell. I would like to take this property down myself and Keep it as a rental property, but I don't know what my next move should be. The owner wants 140K, I offered him 65k for it considering it needs a ton of work. 

Any ideas would be greatly appreciated  

[Aaron W.]

@Robert Duncan That's great you found a potential multifamily!

As has been mentioned above, be detailed in the reason why the property should be purchased a price lower than what they are asking for. Break it down for them line by line. For example, it will cost me $10k for a roof, $20k for plumbing and electric, etc. Help him see the justification for the cost and that you are not trying to low ball the number. 

What do you believe the ARV will be after you fix it up? If you get it for $65k and put in $150k, then you are all in at $215k. With 75% LTV financing at the bank, you would need it to appraise for $287k for you to pull off the perfect BRRRR. If you think it can appraise for higher than $287k, then you might have some room to move up in the offer. Just a thought.

Good luck!