Duplex deal-- could use your advice

[Nicole A.]

Hello! And Happy Thanksgiving.

Roughly a month ago, I noticed a 2-unit go up for sale several doors down from a 2-unit that my LLC already owns. Both units are 2 beds/1 bath and a shared basement...just like my property. I went to see the place. It's okay, but has some repairs needed such as leaky pipes under sinks and leaky windows.

One repair that worries me because I don't know enough about it myself is the ceiling in the 1st floor apartment bedroom is starting to fall down. No one really knows why...one of the renters told a fabulous story of two 300lb each people who stayed in bed all the time and it sunk the floor. Owner says overweight people to that size never lived there.

It could be as simple as the ceiling is detaching from the ceiling studs...but why? I need to bring my contractor to take a look.

Anyway, he was asking $89,900. He sounded at least somewhat "motivated". Told me he was sick of "crazy renters" and the drama...wants to run away to Wyoming. The power was not on at the time. One renter told me she could not get power because she had no lease and landlord would not put it on for her.

This place is not certified lead-free. In fact, it's not even at least lead-safe. My property is lead free. I bought it in the summer of 2012 for $95K. Next door sold for $90K and it is also lead free and in good shape. I don't feel like I should pay in that range for a non-lead-free property. I don't know how much it'll take to get it lead-free.

Rents typically are around $800 or so per 2bedroom apartment. I'm getting $835 for my 2nd floor and $850 for my 1st floor...although I even think $850 is pushing it even though I got a lease for it.

I offered $72,500 and $2000 at closing. I have to put down 25%. So I think actually if my offer had been $74,500 and he pay all closing, I would pay roughly $1000 less out of my own pocket.

I also had these items in my offer:

*Current tenants vacated at minimum one week *prior* to closing.

*Power turned on upon acceptance of offer.

*Buyers will do lead inspection to see what it'll take to get the property certified lead-free.

*Buyers will do home inspection.

Anyway, he rejected.

Today I got an email from his agent letting me know that he just lowered the price to $79,900.

Should I stick to my offer? Was my offer too high to start with? Suggestions on best offer to give the least amount out of my pocket?