How much do you guys think I should go in at as my intial offer?

[Sharad M.]

Hello,

So this great property came on market today. Below are the details:

- REO
- Asking price - $35,000
- 4 units (2-2/1 and 2-1/1)
- All units currently rented for gross monthly rent of $2,050.
- All separate utilities.
- The property has a flat roof.
- With $2,050 in gross monthly rent, the CAP rate comes to a little over 35%. This is ridiculous! I have never seen CAP rate this high. 20% is common, but 35% is excellent!
- The property is in a decent neighborhood, not a war zone by any measure.

I am looking at the property tomorrow, but I have seen the pictures and Google Maps and it looks to be in good shape. My only concern is the flat roof, which I am gonna check out tomorrow.

Let's say if I like the property, what do you guys think I should go in as my initial offer?