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Updated over 5 years ago,
Duplex negotiations with seller
BP i need your help to try and structure this deal with a seller we have been under contract with since early June. When first getting this decent deal with a seller thats been trying sell this duplex for over a year and had a few deals fall through. It would have cash-flowed 200+ with a 17% CoC per door. The issue with this property is each unit was titled separately so the comps sucked when it came down to the appraisal. Each unit is a 2/1 needed minimum work about 3k in total, rents were 725 with current tenants but 800-850 for market value. We were under contract for 56.5 a unit. The appraisal came in around 35-39k a unit. One had a garage and some updates one didnt. Another full duplex sold same block a few houses down 117k during the due diligence phase. The previous buyer that was under contract appraised the entire building at 109k not titled separately. We did a few appraisal disputes but the bank wasnt having it with the comps we brought because they closed after we got under contract. I've offered above around 43k a unit but the seller said no. Offered a subject to deal but my realtor and hers were unfamiliar with it and their broker said it was mortgage fraud so the seller didnt see that offer. I basically had gave up on this deal because the sellers became unresponsive because she did not want to state how much is on the remainder on her mortgage to her realtor or mine. Her FHA loan was assumable but I would have to live in it but that means down-sizing and the bank wouldnt believe I would live there. I still have 4k EMD tied up because the seller wants to work things out and left me a vm saying she really needs to sell and would like to work things out.
I am looking for creative options in order to obtain this without creating to much havoc. I originally gave up on this deal and closed on a few other properties on the same block but I still have some cash I put to the side for DP and closing.