Help Me Negotiate This Duplex! In Realtime!

[Joshua Iachini]

I am negotiating for a duplex in the Southside neighborhood of Pittsburgh which was originally listed at $325K. I own a comparable property 9 blocks away from this one which I closed on for $240.5K in Nov of '14. The duplex brings in $2400/month in gross rent (please, don't bring up the 2% rule) in a neighborhood that has an average vacancy rate in the mid-to-low single digits. There is ALWAYS demand.

I am asking for the BP Community help me make my next counter-offer.

FACTS:

Originally listed at $325K.

My original "low-ball" offer: $230K

Seller's counter: $299K

My Counter: $240.5K (what I paid for my duplex)

Seller's counter: $285K.

My Counter: TBD. Help me! I think the absolute most I would pay for this property is around $255-$260K. How can I get them to continue coming down into this range??

[Ben Leybovich]

It doesn't matter what the seller wants. What is the building worth? By the numbers - what's it worth? Don't get caught up in the excitement. What's it worth - that's what you can afford to pay. If you do anything other, you'll regret later...

Good luck!