Re: First duplex purchase - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on January 25, 1999 at 14:57:09:
First, your realtor needs to pull the sales of duplexes similar to these in those areas. This will give you a better idea about how much the property is really worth.
Next, what are the financing arrangements for this deal ? Is the seller willing to finance all of the purchase, part of it, or none of it ? The financing on a deal is very important.
One thing I have done in the past with multi-property deals is this : Find conventional (bank) financing for one of the properties and get the seller to finance the other property. This gives the seller some cash to payoff the existing loans, and you only have to come up with the down payment and closing costs for one of the properties instead of both. I would still prefer all owner financing, if you can do it.
Lastly, you should make a significantly discounted offer on these properties for taking both. Remember, the seller would be very happy to get rid of these properties all at once instead of having to deal with two separate buyers.
Remember, do your homework before making any offers.
Good Luck !