Duplex - No Comps - How much to offer?

[Terry R.]

I'm fairly new to investing. I have found a duplex that I am interested in. My realtor cannot provide any comps as a duplex has not sold in the past 5 years. How do I know what price to offer? My realtor thinks the price I offered ($28.5K) less the list price was outrageous. Any tips on how to figure out what to offer would be of great help. Thank you all!

[Joel Owens]

1. Are you going to live in one side and rent out the other OR is this purely investment to rent out both sides and you live elsewhere?

2.By 28,500 do you mean you offered that for the property or you offered that amount off of list price??

3.To get a quick value say you want a 10 CAP going in.Find rents for the area say 800 a door. 2 doors is 1,600 gross a month times 12 is 19,200 a year.

Take off half costs at a minimum and you are at 9,600 a year.

At a 10 cap the property is worth 96,000 sales price.Now if you have immediate deferred maintenance going in you deduct that off say it was 20,000.

You would now be at a purchase price of 76,000.

There are so many more factors but this gives you a quick idea.