How to Negotiate the Sales Price Down for a 7 Unit Multi in MD

[Shervin Sepehri]

The list price of this property is around 350K and the current NOI is abysmal roughly 17000. 3 of the units are vacant 1 unit is "rented" to the current landlord's son (rent free). Bank offered us a 15 year amort 6.25% rate with no prepayment penalty. I spoke to some brokers and they said we are essentially getting this loan because my partner and I are very liquid and because the performance of this property is pretty garbage it will be difficult to find better financing until it is fully tenanted and cash flowing. How can I use this to negotiate to the seller to significantly reduce the sales price to as close to 300K. How would you folks go about it. I still believe this property is a good deal and with proper management will cash flow very nicely.

[Russell Brazil]

Where is the property? Not a lot of places I can think of where 7 units should be as cheap as their asking price.