All Forum Posts by: Jim Sullivan

Thank you all for responding. We're still in negotiations now, and he has since dropped his price considerably. Ill be sure to post any new developments.

I was just wondering if anyone would intentionally overpay for a property compared to it's current value (or what you perceive to be its current value), thinking that you as the new owner that can come in and add value enough to meet/exceed the price you originally paid. For instance, this property's rent is a touch below market and there is an opportunity for some utilities to be re-metered back to the tenants. Since this would be my first property, and I do hold a W-2 job, i could possibly take on more risk than say another over leveraged investor. But perhaps 'overpay' is a poor word choice to use on this forum.

That said, I know that I need to let the numbers do the talking and not speculate too much. Thanks again for the input and putting up with my naivety.

Hi all,

As a new investor, Is there ever a situation where you might overpay for your first property just to get started? 

$375K for a 3-flat currently getting $2800/month in rent. My lender has already told me I can put down 10% for a non-FHA loan (w/ PMI of course).

Pros: Off-market in a great location in a solid middle class neighborhood and essentially zero vacancy. Tennant quality is about as good as you can get and is fully rented.

Cons: Needs a bit of updating/rehab. For instance, the roof needs to be replaced very soon and all the units need something (e.g. paint, carpet, flooring, door replacements, etc.)

I am quite anxious to get started even it means losing in the short-term, but perhaps that is the wrong approach.

Any thoughts? 

Thanks in advance