Nashville, TN · Member since 2016 · 44 posts · 12 votes
I just recently got my real estate license, and I was looking at the MLS listings for multi-family homes. I found a duplex that came on the market today in a very convenient suburb of Nashville. The asking price is $119,900. I would like to make a cash offer for a little less. I can't go too low because it will sell easily to someone else with a higher offer. I'd be willing to bet this house will not stay on the market for more than a few days. I called the listing agent and he said he has a showing already scheduled for this evening. The current rent is at $950 total for both sides. I could get a little more easily. It's in a super convenient location, walking distance to Walgreens and a nice grocery, a decent neighborhood, like a C+/B- neighborhood, and good schools. Plugging it into the Rental Property Calculator with a purchase price of $112k shows a cash on cash ROI of 6%+. Should I make an offer?
The ROI is really low (might as well invest in a mutual fund for that return), and that's based on your purchase price being lower than the ask.
Your question was should you make an offer. You can, it will just have to be much lower than the ask price and in our market it's probably going to sell close to asking
The ROI is really low (might as well invest in a mutual fund for that return), and that's based on your purchase price being lower than the ask.
Your question was should you make an offer. You can, it will just have to be much lower than the ask price and in our market it's probably going to sell close to asking