Lost a 6-plex deal. Anyway to still turn it around?

[Vince Liu]

Hi BP Family!

I found this 6-plex in my market that is rare to find. It has great potentials after rehabbing based on the current market rent. The asking price is for sure a steal with its current NOI, but it definitely has its potentials.

We really wanted this deal because we felt that the size of the property is a perfect fit based on our current flipping experience and a perfect next deal as we wrap up our current ones. Unfortunately, we lost it to another offer that offered the same price, but higher down payment % in their mortgage contingency, which made the seller more comfortable. However, based on its current NOI and the prevailing Cap in the area, I believe the appraisal value should be at least tens of thousands lower, if not hundreds of thousands, than the selling price (less than $1m).

I definitely learned a whole lot after this but still really wanted to get this deal. Is there anyway to still turn this around? Should we submit a backup offer? If so, what terms in the backup offer would really make the seller turn to us if anything goes wrong with the current buyer?

Thanks all!