Keep in mind that the price may already reflect the fact that the owners know it needs work and they may not budge on the price after the inspection comes in. They are getting decent income from the property right now as it is, so my guess is that this investment property is bringing them in decent money and unless they have to sell, they're going to hold tight on it. You say investment properties sell fast in that town, why isn't this one? Because they won't budge on the price? But if you're willing to go this route, make an offer, the worst they can do is say no.

Do the current tenants have leases? What are the landlord laws in Maine? In many states, the new buyers inherit the tenents, you cannot just evict them because you want to live there.

Do the current tenants have leases? What are the landlord laws in Maine? In many states, the new buyers inherit the tenents, you cannot just evict them because you want to live there.

But you can buy them out of their lease if they are willing.

what did it sell for the last time it sold? Presumably less, right?

So if the current rental income w/ only 2 of the tenants is high enough it will cover your mortgage completely, then surely with THREE tenants, it more than covers any mortgage they have on it. It may even justify their asking price.

But try--the worst they can do is turn you down, right?

If it's been sitting for 7 months in an area where multiunits sell within weeks, then either their price is too high and they need to own up to it, or everybody else is scared off by the spongy and slanting floors.

I like the suggestion to bid $135k on the idea that it's in fine shape, and if there are structural problems with that floor, either the price needs to be different or you want out.

What's the worst that can happen? They say no. Then you can maybe bid $139k. And then you can walk away. Or, they say no and get huffy, and then you don't bother bidding $139k.

Submit your reasoning for the price you offer, perhaps.

The tenants are on month to month leases.

I just want to be able to get out in case the inspection is bad. They paid 97K for it in 1997.

Thanks I just want to feel comfortable that we can get out without it costing us an arm and a leg.

then they've got a cash cow, I bet--maybe they'll hold firm, and maybe they won't.

Give it a shot; you know what you want, so offer that.

Do you have any prior landlord experiance? There is an old landlord saying - "there are only two good days to own investment property - the day you buy and the day you sell , everything in between is called GRIEF!"
We own and live in a 5 unit - It is an old building too. I would hate to be trying to restore a money pit off site - while managing and maintaining this building too.
How are you going to feel when you need to spend $5,000 on a roof or furnace on the apartment building when you were hoping to buy something nice for your dream house? Are you prepared to move into a new community - new jobs- and work on TWO places at once?
Investment property is a BUSINESS - it takes time,work and dedication to profit. There are good tennants and very bad tennants - the bad ones can wipe out cash flow for months while you are evicting them.
Are the utilities included with the rents? Taxes and insurance costs are assesed differently for comercial property than home owner property.
Remember when you sell this property you will be subject to capital gains on a portion of the sale due to it will not be 100% homestead. If you aren't planning on owning the property long term - it may be more prudent to rent something larger for the two of you while you work on the money pit dream house
This could work for you - just be sure you want to get into the LANDLORD business first.

We've unfortunately had eight months to debate all the good and bad and wierd issues. We have met the tenants - no children - just single women - and if there is a looming problem with anything major like a roof or furnace, we won't buy it. We will rent.

Based on this particular property, and advice from others who own similar places, I feel comfortable enough to at least put in an offer. I can't say that for any others we have looked at. I'll just have to curb my urge to clean up their places, like I did my daughter's rooms. I think the ladies might get a little pissed if they keep seeing their apartments tidied up everyday. ;)

There have to be a couple of sunny days in between the grief - huh?

"There have to be a couple of sunny days in between the grief - huh?"

Nope. We sold our rental house two years ago and I can honestly say that a huge weight was lifted off of us. Took us a long time to get decent tenants in it, and I still hated it. No thanks. Never again. I don't need that kind of stress in my life.

There's no such thing as "free." You won't be living for "free" because that just don't happen.

Were I you, I would just rent a small apartment and sink everything into renovating your "for real" house. Let someone else worry about the furnace and the leaky roof. Renovating a house is stress enough....

Er,...doesn't happen...LOL

It certainly is early....