Advise on Grumpy owner Turned down Cash offer

[Henry R.]

Hi everyone at BP,

I'm looking for some advise on a property that I ran some numbers using an on-line investment Caculator.

Here are some figures based on a 20% discounted from the asking price of 112k, which I know is not likely to happen, you'll see why later.

Purchase Price 89,600 after 25% down.$22,400
Loan rate 5% 30yrs
Montly rental $2125
Rent increase per year 4% per the calculator

Inflation 4.0
Property Growth I changed to 2% from 6%

Loan 67,200

ins 650 per year
Taxes 4900
Monthly expenses 250 no PM at this time not including taxes.

Income 25500
Expenses Ins 650
Taxes 4900
Monthly exp/fees 3000
Total payments 4320
total expenses 12870
Cash Flow 12630
tax deduction interest 3360
Depreciation 2932
Rental income 25500
Total tax deduction -10658
Tax saved -1598

Net Worth after tax cash flow 11,032
Principal paid 960
Property Value 91,392
yearly addition to net worth 13784

I was told today by my agent, that the sellers agent said it is a real dump and the seller turned down a cash offer of 95K

It's listed as a motivated seller, but it does not seem that way. Price just lowered from 117K to 115K.

J. Scott had a challenge today so I called my agent right away after giving her the address last night. But it looks like I will not get to make an offer at least on this property.

It is not worth the 95k they rejected.

Thoughts on the #'s given anyone

Thanks in advance