Good investment property but price is not right

[Giancarlo Ameglio]

Hello everyone,
I found a great investment opportunity. High demand/prime location/ well maintained. 5 minutes walk from FSU.

Its a 2 buildings with 2 units each with 4 rooms/ Bathroom and one kitchen unit.Its a two building complex with designated parking and wooden fencing. Rented by room to students. 16 rooms renting at 650$ and could do 700$ a room with the current market. The property is worth 1.3 M so even with the high rent its not a good deal. 

I think i can make it work by putting 5% down with a FHA Loan and move into the property for a year . At the same time I can rent out the other 2 rooms while I stay there and then move out and make about 500$ in cashflow.

The problem is the price needs to come down from 1.3 M to 1.2M at least. The property has been in the market for sale in the past 4 months.

For the experience investors out there do you know good negotiation strategies? Maybe offer lower than my intended price and then moving up.

Do you think its a good deal?

Any other thoughts and advice is welcome. 

[Carolyn Yates]

If the numbers don't work then I would move on.  In an apartment where the tenants rent by the room, the landlord's utilities are most likely higher as they most likely cover the electricity, cable, water, garbage, etc.  I would just be upfront with the seller and say at the price they are asking the numbers do not work for you, but you would be interested in the deal at $X value.  Maybe the seller would be able to offer some seller financing to make the offer more attractive to you.  When doing your calculations, don't forget to consider vacancies and reserves for future expenses.