Posted by Chris on February 05, 2000 at 11:23:09:
In addition to checking the acceptable GRM in your area you may also want to compute the price per heated square foot of comparable properties and multiply that by your target property total heated square feet to arrive at a purchase price. You need to know how much it will cost to take care of the repairs needed and subtract that from the offer.
You may also want to figure income after vacancies and expenses (excluding debt service) are subtracted to figure how much you have to pay mortgages on the property. Knowing how much you have to pay debt service after finding out the equity and existing liens in the property will give you more information to provide an offer.
You want to look at this from various angles to see if it is workable in addition to a GRM.
What are the sellers willing to do to assist with financing?
-Hope this helps, Chris