4 plex offer advice

[Kelli Van Doren]

Hi,

I am considering an offer on a 4 plex that is a short sale. Owner has 230,000 in debt. List price is 175,000. There is another offer already so I am to make my highest and best offer. Rent is 550/unit. It is in a good neighborhood.

I used J Scott's Basic Rental Analysis Worksheet and got a cash ROI of 13.88% with an offer of 175,000. Included maintenance, insurance, taxes, lawn care, property management, admin fee, 10% vacancy rate.

What do you recommend for an offer price? The roof probably needs replaced...it is a mansard roof.

Thanks,

Kelli