8plex for sale at 150k but appraised at 88k

[Seth Hudson]

I am looking at an 8 plex as my first rental property. it was built in 1987 and comes with renters whom have been there anywhere from 2-6 years. It cash flows 100 each unit coming out to 800/ month. The seller has offered to be “the bank” and borrow from them with a 5% apr and requires zero money down. The appraised value of the property and land only comes to 88k and the seller is asking 150k. Is that normal for rental sellers to ask for so much above the appraisal value?

[Ali Boone]

An 8plex for $150k? Where is that? What are the general rent ranges these apartments get?

When you go mega cheap, and therefore mega cheap rents, you're going to be taking on a whole slew of extra headaches that you need to be prepped for. There's a reason the caps are so much higher on low-end properties...