What should I OFFER on this Property?

[Anthony A.]

Hi Everyone,

I'm not a pro like most on here but I am learning more everyday. I have an owner carry deal offered to me on a 1bd/1.5ba 4plex. All four units are about 850sq ft and two-level.  3 of 4 are 2-year old remodels and the other has not.  Here are the particulars that have been provided:

Purchase Price: 669K

Rents: 4,500 (1175/1175/1150/1000) = 54,000 Annually

HOA: 800 x 12 = 9,600 Annually

Interior Maintenance: 2,000 Annually

Estimated Tax: 7,500

Liability Insurance: $250.00

HOA pays water/trash/insurance and all exterior maintenance/upkeep. I am aware the HOA is high. I am responsible for all interior repairs. If I want, they will do them since they are on-site and bill me or I can do them myself. There are no other bills than what I am told above. What is the right price to offer?

This property is in Orange County, CA.

What do you think is the RIGHT offer price?

[Steve Vaughan]

The rent/value ratio isn't there for me, but I understand this may be a steal in Orange County.  Whatever you offer, make it an odd-lot price that makes it look like you did a detailed analysis.  Big, round, PFA numbers get countered.  (i.e. $642,348 vs $645,000)  Good luck!