Historical over the last 2 to 3 years tells a vivid picture.Many when trying to sell offer concessions to get tenants in and get occupancy up.I have tried to tell rehabbers who want to sell they have to get it performing for at least 6 to 12 months at the new occupancy levels to base cap rates on and asking prices.They call me and want to list to sell.They bought about 8 months ago.They got occupancy up from 30 percent to 60 percent but they now want to base asking off of 90 percent.I tell them they have to get at 90% and stay there for 6 months and then call me back.Otherwise they will need to base off of the 50% they have averaged the last 5 months.I know of another 36 unit that was rehabbed by an out of the country investor here in Ga.They did 1 million in reno's and are now asking in the 3's but have only 50% occupancy.Property looks nice but nobody in there right mind will pay that price.The hard part is not the rehab but getting occupancy up and staying there for along period of time without giving away the farm in concessions.Most of these rehabbers with multifamily bought and rehabbed and found lease up to be too hard and are trying to find a sucker to buy on POTENTIAL.I just wish so many trash listings were not out there right now.I don't take trash and will work on a seller for months before listing if I have to at the right price.

There will be more deals for us and this was a once in a lifetime thing for her....It happens and sometimes we just have to feel good to make things work out for the people who need it.Sounds like you're not making a big fuss over it and the new family bought a home they didn't think they could buy...NICE WORK Bud!

I also got 10 percent off on top of that.

The sure enough landlords will say your returns are too low at 1.39 percent (rent/investment).

Just a note (lol) great job Jason, to make it clearer one point = one per cent of the loan amount.As to taking an equity position.

"Lowering the price 5-10% eats into our profit"Reducing 2k at your price level isn't even a 1 percent reduction in price.You are pregnant and need to lighten your load.You don't want to chase the market down or have new listings come up at a cheaper price or have a seller get desperate and reduce big and set a new price medium for your market.You need to reduce now and get it closed.I have seen this happen over and over.

So what we do is break out my lower discounted items...if I saved over ten percent I leave it alone...

The only reason I am a member is because I get two percent credit at HD at the end of the year.

It varies state by state on what level a real estate broker/agent can help a seller with a short sale on the residential side.In some states brokers/agents simply submit a contract and attorneys for the parties do the rest.In some states brokers/agents can help with workout options but in other states they must hold a mortgage license.There is also Federal requirements and disclosures brokers/agents must use when listing a short sale.The government calls it "the short sale streamline process".I call it a bunch of red tape that isn't needed which creates more government oversight and bloat wasting our tax dollars.Depending on loan type if the property is FHA then they can only accept a certain amount off of appraisal.A few years back it was easier to massage the bpo using different strategies to get close to your purchase number.Today more banks are using agents with experience doing bpo's and also the banks have controls in place to almost eliminate any manipulation by investor purchasers on value.Another point is if your area is declining by 1 percent a month and it takes 3 months for an approval by the time you close you have lost 3% in value.How you approach a short sale and an acceptable number will depend on what you are doing with the property.Margins and hold times are different for assigning,flipping,and rentals.

Also the down payment cannot be more than one thousand dollars ($1,000) or 10 percent of the contract price, whichever is less, for a home improvement job.With that in mind, have your contractor word the pre-agreed upon payment schedule in the contract.