Neighbor is downsizing and offered to sell

[Geo Cruz]

Hi guys I just want to get your advice on a potential off market investment opportunity for me and my wife. We are currently looking for our first long term investment and are networking and talking to friends and family about what we are looking for. We happen to briefly share our intent to buy with our next door neighbor and they surprisingly told us they are ready to downsize and were willing to sell to us before listing.

Of course we told them that we would be interested to look and see if we can work something out. What ideas would you guys suggest to present to them to entice them to sell to us, hopefully under market. I know this is a loaded question but in general how can we make an offer that's a win win? We will be having a more in depth conversation to learn in detail their goals and for us to share what we're looking for but in general they are downsizing and we are looking for first a BRRRR but also open to long term rental.

Our first thoughts on how this would benefit them are that we would take property as is, we would be flexible with timing for closing, we can possibly leverage my construction network for their next property. Any other ideas we can bring to add value to them and offset an offer so we can achieve the best under market buy? What do you guys think would be a good starting point for an offer?

Home is probably valued at high 600k to low 700k. Rents in the area are 3000-3500. Public record shows they had a ELOC and Cash Out 5-6 years ago for about 360k. Latest rate and term refi recorded was 2012 at 200k which has been estimated to be reconveyed but who knows. This info might all be irrelevant but just thought I would share to get a better picture of approach strategy.