Would you do this Deal?

[Soniel Estime]

I am currently trying to close on a deal where the appraisal came in low. I am the buyer and the seller is currently contesting the appraisal but isn't providing any good comps to overturn the initial appraisal. The property is solid, newly rehabbed and potentially has some value add opportunity (Adding coin laundry and potentially charging for extra storage in the basement). The inspector didn't find any major issues with the property besides the garage door not working. The property is currently rented with tenants who have been there for 2 years. I have been contemplating, if/when the challenging of the appraisal fails, should I move forward and pay the difference on the property? My first thought is to meet them in the middle at $240,000 I provided some details of the deal below, what would you do? Keep in mind that the goal here is to buy and hold.

Purchase Price: $250,000

Down payment: 5% 

Seller Credit: $1500

Appraised Value:$232,000

Monthly Mortgage (Tax, insurance, PMI): $1450

Additional Cost for repairs: $2500

Building Water Cost: $200 per month 

Units: 2

Rooms: 2 bed 1 bath Each unit 

Rents: Unit 1- $1100 Unit 2- $1150

Square Feet: 900 Sqt

[Nathan Gesner]

I would purchase at appraised value or walk away. I would only meet them in the middle if it were an appreciating market. With a duplex priced at $232,000 in this hot market, I suspect you're in a low-appreciation market and it's not worth it.