It's Not Easy to Change Your Mindset

[Luis Bermudez]

I have my first investment property under contract for $87,500.  It's probably worth $67k, but I think it can still net $1000k/mo. after ALL expenses.  I signed a contract without adding the inspection contingency.  I had an inspection done and learned the main sewer drain needs to be replaced.  A portion of roof needs replacement and their are numerous repairs ranging from basic to intermediate throughout the property.  Do I loose the $3k earnest money (too much, I know now), or push forward?  I have no trade experience but, guestimate the repairs to be between $15 and 20K.  I wouldn't be surprised if it were more.  I don't have the cash to make the repairs.  I would need to change the loan to one that would allow me to borrow above the purchase price to make repairs.  After all the reading and podcast watching the truth is clear: You don't learn this business until you do this business.  I've already learned so much.  I still think this property is a profitable asset at a $110,000 investment.  The seller is willing to continue to negotiate given the enormity of repairs required.  How do I find additional funding if necessary?  I've never needed professional, experienced advice like I do now.  thanks, in advance.

[Joe Villeneuve]

You can offer more than the appraised value for a property and still have it cash flow...and make more money is some cases than the REI that can only make money offering less than the AV. The key is the seller must be able to do some form of Seller Financing. Unfortunately, that doesn't appear to be the case here.

My original question still stands though.  When you analyze this deal property again, does it still CF...and if it does (or doesn't how much?