I need advice, what do I put my offer as?

[Chris Marshall]

So here's the situation. One deed, two homes back to back to each other. First home 988sqft 3bed 1 bath. Second 747 sqft 2bed 1 bath. Asking $87900. I don't believe that I will get more than $65/sqft after repair. I will be lucky to only put 30k into both of these properties. Currently both are rented out the three bedroom for 550/month and 2 bed for 475/month. Neither tenant is on a lease they rent month to month. And each pay electric themselves. I can have financing with a variable 6% initial interest rate at first I think it'll be locked in for three years. And financed out for 25 years. Payment might be under 700 with taxes and insurance. This is my first deal. What do I do? They have at least four more investors looking at the property by Sunday the 12th it is Friday the 10th right now. It went on mls this morning. I think I should offer around 70k giving me hopefully 10k profit if I flipped and sold both. Please give me advice!

[Ryan Murdock]

Are you certain that you will be able to separate them? Possible deed restrictions or zoning issues may prohibit you from doing that.  You didn't provide all the numbers but $10k seems like a pretty slim margin and doesn't leave much room for error. Your reno budget alone is 3x your projected profit.  I'd think you'd want a little bigger cushion on a first deal.