First distressed BRRRR property offer???

[Jacqueline Coombs]

Hi, everyone! I recently went to view a house in an up-and-coming neighborhood here in GR, MI. I am trying to determine a fair price to settle with the seller on. I gave her my conservative offer of 25k and she came back at 33k so we're not too far off. The seller answered my first batch of direct mail to tax-delinquent owners and wants to "move on and start fresh" from her childhood home she just inherited from her mother. Here are the stats on the home: Goal is BRRRR strategy 1910 American four square w original siding/woodwork 3/1 1200sq ft Repairs to rent out: 35k (house has had nothing done to it for 30 years except for an added garage) ARV approximately 70-90k (recently sold homes are all over the place but nicer ones are in this range) Distressed comps are anywhere from 15-40k Owes 2500 taxes due end of March MLS listed properties are seeing multiple offers no matter the condition! Seller and I have established excellent rapport. She was crying on the phone talking about her mother's passing and the attachment she's had with the home. I told her it was okay if she didn't want to make a decision yet and to call me if and when she was ready. She called me back a week later. Seller received another offer of 36k from another person's direct mailer but she told me flat-out she did not like the guy and prefers to sell to me. I have a meeting scheduled with her next Tuesday to sign a PA but the only issue is price! My #s say don't go over 30k but that can be accomplished if the taxes come out of her end. Or, do I try to negotiate closer to my target 25k? I get uncomfortable negotiating price!! Any help on this would be greatly appreciated!! Jackie Botham, GR, MI

[Jacqueline Coombs]

Omg!! I did it!! 28k PP with seller paying all back taxes!! I am so proud of myself for my first successful face-to-face negotiation and so excited to do this rehab!! Thank you everyone, for your ongoing support!!