Quad-plex in NC - Multiple Offer Situation

[Ryan M.]

Hi Folks,

I'm a newbie and my few deals have been on the vacation rental side but my brother and I want to partner up for some buy and holds in the Winston Salem and Greensboro area of North Carolina. We've been looking for a while but haven't really found anything where the numbers worked. 

This quad came up a few days ago on the MLS. It's in excellent condition. I put some rehab costs in the calculator just in case but from a visual inspection it really doesn't need anything. The rents in that area for a 2 bedroom apt are usually more like 600-700 and three of these units are rented at 435 while the fourth is vacant. I think I'm being conservative by assuming we can bump those up to 500. Electric is paid by tenants, water/garbage by the owner.

The owner died last month and they want to get rid of it fast, but they already have an offer on the table. They didn't accept it immediately so I assume it's fairly low-ball. I think whoever offered is somewhat savvy because I had to do quite a lot of sleuthing to figure out the owner had died since it's actually owned by a trust. 

 They are asking 145k, we are putting in an offer of 120k but I know we will get a "give us your highest and best" next. My question is how high do we go? I'm thinking 130k since there's some uncertainty involved and I want to be conservative on our first deal. I should add that in NC a 30 day DD period is standard and during that time you can exit for any reason, so we have plenty of time to catch any mistakes.

Also there are almost no comps in the area so it's really hard to tell what its worth. And ideas on how to deal with that?

Here's the BP report. I took out some identifying information in case my competitor is lurking around here so don't pay attention to the address on there ;) https://www.biggerpockets.com/calculators/shared/7...

Thanks so much for your help, you all are amazing!

Ryan