how to bring a seller down , buy or not ?

[Nathan Bell]

ok so, this lady is asking 90, but the house is been on the market for 3 months in a very hot market, but this micro market is not so great bc of the location as being perceived as the ghetto.  truthfully its not that bad. and is close to town. 10 min bike ride, the wave of rebuilding is on its way. So I offered 70,  she responded with 88. I countered at 83 she pays closing, sellers agent says she probably wont go for it.  3/2 bath mortgage will be about 500.  rent for 800 on the safe side. possibility of finishing the basement into studio and renting for another 500.  I would be the highest buyer on the street at her asking price, but I can still afford it. looks to me like the best buy under 100,000 in town. 

trying to build a portfolio this is number 2.   should I loose this deal over 10,000 ?  how much should I expect her to drop. 

thanks 

[Brian Hosier]

Hi Nathan Bell, sounds like an interesting opportunity. In my view, you would be overpaying if you go for it at 88 because you would be the highest price on the street.

However, the fact that it would still cash flow even without the basement studio is great so if you are a buy and hold investor you would be okay long term.

One final thing to consider, if there is a correction coming would you be able to ride out the storm if rents drop? Without having any details of the market you're in, these are my thoughts. Good luck!