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Help With Seller Finance Counter Offer
Greetings All! I need your help. Much thanks in advance!!
I have been presented with the opportunity to purchase a 5-plex SELLER FINANCED. The location is near California City, Ca. It kind of just feel in my lap. Here are the details.
Property: 5-plex commercial property. All 2bd 1ba. 786sqft per unit. Carports but no garages.
Year Built: 1979; Lot Size 6098sqft; Living Area: 3930sqft
Current Rents: 750, 575, 550, 550, 350 = $2775/mo..... Rents SHOULD be at least 750 for all units = $3750. The owner never really raised rents.
A 4-plex in the same area (2bds, 1.5ba) recently sold for 375K ($93,750/unit). So, if no major repairs are needed, Id guess the property should be worth ~$450,000. My offer is contingent upon full pro inspection.
My Initial Offer: Purchase: $375,000 Down payment: $20,000 Interest Rate: 3% Amortization period: 30yrs; Balloon in 10yrs 6 month moratorium on 1st payment (to give me time to vacate and upgrade at least 1 unit)
Sellers Counter Offer: Purchase: $395,000.0: Down payment: $60,000.00Interest Rate: 6% aprSeller to carry the balance of $335,000.00 amortized over 30 yrs.Balloon of full balance in 3 years option to extend 1 yr if needed.Monthly payment: $1675.00 interest onlyNo repairs.First payment due 45 days after the close of escrow.
I am not working directly with the owner. I am working with a mutual friend of the owner, whom is also a real estate agent. She does not have a lot of experience with seller finance deals.
She did hint at me the other day saying that the owner needs at least $35000 down to make the deal happen. Just last week, it was $50000. lol
I am looking to put as little down as possible.
Please let me know if more information is needed.
What do you all recommend my next counter offer be?