buying just below asking price for rental?

[Jonathan Beemer]

Hi BP,

just for knowledge sake:
wandering what your thoughts are on properties that are negotiated to just below asking price. with no repairs needed. rent ready.
so say there is a property that is worth 100K, needs no repairs and in a good market for rentals. and you negotiate to 95K. You estimate to be able to sell it at the same price when needed. 
is that ok, to add to your investment portfolio? or should you never look at those deals?
obviously, its better to use negotiating techniques and look for other deals but the owner is dead set on selling it for that price and will not sell until he gets that price.

all hypothetical and im not looking into a property with this issue. im looking for below market value.

thank you!

[Todd Magin]

If the rental numbers work, then it would be OK, but your margin for error would be low.  How much better would those numbers be if you got the property (or one like it) at a discount?  Don't fall in love with the property, fall in love with the deal.  My advice would be to move on.