Good morning,
I have a 4-plex I put out an offer on. Asking $320,000, with a potential $80k Seller carry back. Current rents would cover all expenses plus cap ex, maintenance and vacancy. Rents are low and after talking to a PM they said that property should bring in $900 a month per unit ( in a college town). With the updated rents, which should happen in October this place would cashflow well. The realtor said the seller would entertain a 40k under asking, (its been on the market for over 90 days) with a 80k seller carry back. So I put in an offer with my realtor at those numbers and they got back without any counter offer saying its "too little of a purchase price to do any sort of seller carry back."
The units need some work, but shouldn't be any major gut and remodel. Also the water heaters and the boilers for the units were replaced within the last two years. The current owner has only owned it for 1.5 years approximately.
My question is this: Could I offer again at 20k under asking, maybe with better interest on the seller carry back note, (which was 4% with balloon at 5 yrs) and possibly ask for a interest rate buy down on the commercial loan? Commercial loan is currently at 6.8%. It would work really well at 5.8% if that is an option.
