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Updated over 5 years ago,
Making an offer to buy 3 family with bad tenant and no inspection
There's a 3-family on the market in Greenfield, MA, asking 149,000. Looking at price/basic square footage, rents around here are about $1/sqft so total rents could be around 2100. Could make an offer but the one tenant (who is not paying) won't allow visits and is taking over the other two units! Walked around the outside and it looks like other 3-families in the area that, like every new building, need 5k of work.
My plan is to make an offer assuming a long eviction, lots of renovation and new appliances and heating units. I'll explain all my thinking in the offer. Then, the current owner can come back and say things like, "actually, the furnace is only 8 years old" and I can raise my price. Thinking will start somewhere around 85k.
Wondering if anyone has experience making these kinds of offers - basically I'll take the current owners complete mess off their hands but it will cost them.
Marc