Offers?? Current numbers or projected numbers

[Cassidy Burns]

Hi BP,

Just curious how everyone is structuring their numbers??  Are you basing it off of the current rents being collected?  Or are you using the numbers that you will eventually raise them to due to being under market?

Example:

Duplex: $45,000 purchase price off market.  

-2- 2 Bedroom/1 bathroom units: Both have been occupied for 6 years @ $350/side.  $700 total.

-Current cash flow: $275/month 

-Market Rent: $550-600/month per unit.

-Unit is in good condition and wouldn't really need any work following closing.  I offered based on the current rents @ $38,000 and they will not budge off of $45,000 and are going to put it on market at the beginning of June.  Do I just come up to their $45,000 due to the projected numbers ?

Thanks!