Analyzing my first deal (help!)

[Swetha Mandava]

I'm investing in a duplex in Squirrel hill, Pittsburgh, PA

Offer price 253k
downpayment 25% = 63.25k
Mortgage Rate 5% ARM loan with 7/1
Current Rent, fully occupied 2125 / month
Vacancy Rate 6%
Operating Costs 10%
Property Management 7%
Insurance 1500 / year
Taxes 5800/year once tax assessed value increases to sale price. Currently 2.5k/year.

My vacancy rate + operating costs are general estimates i found on blogs. It seems to be a great location, very close to CMU so i estimate vacancy rate should be much lower in reality. Although, the house is somewhat old with a 10 year old roof.

With the above estimates, I'm bleeding -142/month. That seems worrisome with popular advise but unsure if i could increase rents in a year?
The inspection report just came back with 2 things i'm worried about - the house has a fuse box and might need replacement and the foundation wall that has been repaired about 17 years ago has a crack in it. The seller insists both are nothing to worry about, getting an electrician+structural engineer to take a look. 

Any advise on negotiating price if repairs are needed? 
Thanks in advance.

[Alan Ouellette]

@Swetha Mandava

Congratulations on being this close to your deal!!! My thoughts would be to get quotes on updates mentioned above, not worried about the roof, and then reduce your offer by that amount plus 5-7% for your time. They will either have it done or pay for it. You can remind them that anyone looking to purchase this property would likely make the same argument. The electric box is my biggest concern but I also can't see how bad the foundation crack is.. Trust the professionals. Let us know how it goes.