My first offer got rejected and I couldn’t be more proud

[Account Closed]

My wife and I are looking to owner occupy a fourplex. I found a triplex that was distressed and the owner bought it at a foreclosure for $116,000 last February. The listing price was $234,000 and the largest unit was just ransacked. Smoke, urine, torn up everything. I saw all the unused space and found a place to add a shower to make a full bath. We were excited. I offered 165,000 using 70% of the ARV (I believe it’s about 235,000) or 180,000 with seller financing. They turned it down and said it’s nowhere in the ballpark. 165,000 was pretty much the highest you could go while still appropriately cash flowing. I guess this is really how real estate investing goes. Time to find another one!