Negotiation Strategies when Price Doesn't Work

[Jeremy Stepanovich]

Hi everyone,

I'm wondering what I can do to help level the playing field with a seller when we can't agree on a price. Here is some quick background on the property:

• This is a 3-flat that I am looking to house hack
• Two 3-bed/1-bath units and a 1-bed/-bath
• Building started on the market at $487,000, dropped to $475,000 after the first month
• Has been sitting on the market 80+ days

Currently, the rents are about 70% of their market value and only 2 of the 3 units are rented because the owner lived in one of the 3/1's.

Even if this was fully rented at market rents the asking price is way over what the market is dictating. We came in and offered $400k thinking our cap would be at $425k to take the place as is. The seller is persistent on getting at least $450k for the place and we are at a standstill.

This is a great property, we have run the numbers multiple times to ensure that it can work and $425k is what we feel comfortable paying unless we can negotiate the terms of the agreement.

I really want this property. It has everything I'm looking for in my first house hack.

Here's where I need your help - what kind of terms can I negotiate with the seller to help insure that my investment is still solid? Have any of you had success with things like tenant placement, increasing rents, etc. that you agreed to in order to close the deal?

Any input is greatly appreciated. If more information is required I'm happy to provide it. Ideally I'd like to have some ideas ASAP as we aren't sure how long until another offer comes to the table. Thanks in advance!