How to approach this deal tomorrow

[Billy W.]

Hey Everyone,

Tomorrow I will be taking a look at a duplex that is for sale. They have been trying to sell it since September and had it listed at $128K. It is now listed at $100K.

The duplex is a bit run down and my guess is it would need about $10 - $15K in repairs to make it move in ready. Units are 2b 1ba which can rent for $750 and a 1b 1ba which can rent for $500 -$600.

Duplex is in an extremely desirable neighborhood with one of the best school districts in the city. Houses around it sell in the $250K - $600K range. The house right next door bought their land in 2000 for $225K and it is county appraised for $450K today on their website. The lots are the same size (potential to expand duplex or sell to developer later?).

How would you approach this meeting tomorrow? With the houses selling in the $250k - $600k range, what would you be looking at in terms of getting the price down to?

To meet the 2% rule, we would have to get about $55K, which Im not sure if that is doable. Any suggestions on this one?

Thanks