I’m trying to figure out how to write a 1st offer without antagonizing the seller … 10 unit rehab, 1-3/2, 3-2/1, 5-1/1, 1-0/1 plus other income potential; IRA Custodian owner says to treat it as a REO - i.e. no information, minimal access. Property was 100% occupied around 8 months ago - now 3 tenants. They’re willing to carry some - but not defined.
So at the moment, no NOI; the 3 tenants are paying 500-600. Rents in county for low income are maximum of $1100 for studio; 1300 for 1/1; etc.
Neither owner nor county has square footage of buildings (records say 23 bedrooms, 1400 sf). I walked off at least another 1800 sf, could be more. Thus hard to guess at replacement cost.
Broker put lock box on largest unit but doesn’t have key to dead bolt. Most of the other units have keyed padlocks - can you guess? No keys. Therefore it’s hard to estimate repairs.
Asking $490k after $100k drop in price. I’m tempted to make low-ball cash offer, but don’t know how low. Oh, and the catch, $80k in back taxes; payment plan with the county at 18% is increasing the tax debt by $1k per month; so I probably would have to expect at least $110k down payment.
Any thoughts? I’d appreciate some brain storms right now. Thanks,
Mary Cronin
CA