Advice on offers

[Anthony P.]

Hello All!

Im working on my first deal as an investor. I'm in the Fresno/Clovis California Market so you know it can be rough. We are using the VA loan and have a cap of $417K. We found a multifamily in a good part of town and the listing price is around $500K. Running the numbers at the asking price makes this deal not so much of a deal. So I ran the numbers from my limit to the asking price and have found the a sale price of $427K earns us approx. $246 cash flow & 13% CoC ROI. For every $10K I increase the purchase price I lose a few % on the CoC ROI and around -$40 cash flow. There are not many comps to work off in the area but the most recent (Last month) a similar property sold for $450K. So I understand I haven't given all the specifics but all that to say, my question is....

Is it alright to offer a low ball figure?  Am I going to tarnish my name already if I do so?  Or should I even care/worry? Any suggestions would be appreciated.  Also I have really thick skin, so any criticism will not hurt my feelings its business.

Thanks in advance!