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Updated over 5 years ago,

User Stats

14
Posts
0
Votes
Henry Kicera
  • Homeowner
  • Burlington, KY
0
Votes |
14
Posts

What am I missing here? Duplex deal question

Henry Kicera
  • Homeowner
  • Burlington, KY
Posted

I'm trying to figure out what I'm missing.

Duplex for sale. Comps put it in the $136-140 range.

Listed for sale on MLS for $160k in sellers market

Gross rent $1,700/mo. Market rents.

I offered $136k, planning to finance. Don't have all the cash on hand.

Got an email from the agent asking why such a low offer?

I emailed back (even though I didn't have to explain) with attachments showing the comps, and how I thought the market doesn't support the list price, and that I didn't think a bank wouldn't appraise the property for much more than what I offered if at all higher.

Offer rejected outright. No counter. I wasn't interested in submitting a higher offer, I didn't want to overpay, even though the property would cash flow ok financed at list price (if it even appraised for that).

Property currently pending 4 days later with what appears to be a cash offer. I'm assuming it was list price offer based on the exchange I had.

What am I missing?

It doesn't make sense to me to seemingly over pay on an asset, and have negative equity off the bat? I don't think the market would support higher rents. The property was in good shape, no repairs to be made.

I understand getting 10% on your money, but the stock market is even out performing that right now.

Forgive me if I'm missing something, I'm just trying to learn.

Thanks!

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