Over 90 days into closing, seeking advice

[Ben Macy]

Hi,

I'm buying an out of state rental property, and like I said in the title, I'm over 90 days into closing. This is my second deal, and here is a general outline of what has happened:

Mid April: I put in offers to buy the rental property.

Late April: Seller accepted offer

Early May: PM/ seller dragged their feet through availability for inspections/ appraisal. 

Mid May: Appraisal came in, water and HVAC weren't on, so appraiser required plumber and HVAC inspections. Inspection came in with issues, negotiated with seller to reduce purchase price. At this point, I'm learning the previous tenants were evicted and the place needs work (cleaning, various small neglected issues)

Late June: PM/ seller finally got plumbing/ HVAC follow ups, but there was no documentation or report. They said everything was ok except a valve needed replacement (concession made).

July: Waiting for plumber report since lender required documentation.

Late July: Now PM/ seller is saying they found a 'large water leak' and will be fixing it.

At this point, I am feeling less confident that the home will be in decent condition. They are going to be asking for another extension on the closing date, but I'm not sure if it's a good idea to continue to move forward. 

The math on the property is similar for me; I shoot for ~$200 cash flow and >10% IRR which should be achievable as long as there aren't any gross issues. I'm also planning on using the existing PM (using for a different property in the area), but I'm looking for guidance. Should I find another PM in the area? Should I walk away from this deal?

Thanks so much!