Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

28
Posts
13
Votes
Brian V.
  • Homeowner
  • Victorville, CA
13
Votes |
28
Posts

Is it an insult to make an offer based on the income?

Brian V.
  • Homeowner
  • Victorville, CA
Posted

Hi, there is a 4-plex I'd like to buy. However the asking price is a rich $920,000. I figured out based on NOI, that if I put 3.5% down as an owner occupied FHA loan, that all I can afford to offer is $500,000. He posts his cap rate at $920,000 is 4%. Its a fairly desirable area in Southern California and the complex is in good shape.

Do I offer $500,000 which the NOI covers including PMI (and we are paying full price montly rental for the unit we live in)...or do I not offer because I might insult someone? If I sell my house, I can cover the down payment and purchase expenses and have about $40,000 cushion in the bank for emergencies.

I'm really interested in house hacking, and I've read many articles, listened to podcasts, and heard many success stories about it. The problem is I live in Southern California and people seem to want top dollar for paltry rents. Most of the income properties that cross my desk are very old and ugly. This one I"m interested in is pretty and exactly where I want to live.

Most Popular Reply

User Stats

1,358
Posts
1,322
Votes
Levi T.
  • Rental Property Investor
  • Tucson AZ / Nice FR
1,322
Votes |
1,358
Posts
Levi T.
  • Rental Property Investor
  • Tucson AZ / Nice FR
Replied

Do you care if you insult them? I know I insult dozens of people every year with my offers.. hell, some people go as far as to make death threats... does it stop me, nope, does making them offers work, yup. It's hit or miss. Haters are going to hate when you land one, because they never tried!

Loading replies...