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Updated over 10 years ago,

User Stats

95
Posts
15
Votes
Kyle Kelley
  • Investor
  • Hawthorne, CA
15
Votes |
95
Posts

Deal Analysis - Need Help! Is it worth haggling over 6K??

Kyle Kelley
  • Investor
  • Hawthorne, CA
Posted

Hi all, I need some help analyzing a potential deal. I will provide the basics of the scenario:

2 properties for 1 price: 

Sale Price : $56000 vs $50000 

Total rent : $1450

Vacancy (8%) : $116 (although both properties tenanted and staying, included in the costs)

Operating Expenses : $408 

Net income: $926

Cash Flow Minus Mortgage @ $56,000 = $625         Cash Flow Minus Mortgage @$50,000 = $657

I had 50K in mind as purchase price, seller says he's at 56K and seems to be pretty firm, should I really be concerned about haggling over 6K when its only going to result in $32 cash flow difference? Seems like I would be able to recoup that 6K rather quickly, within a year if my math is right. Any help and input is much appreciated! 

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