Need advice on my 1st Real Estate Deal in New Jersey

[Jeff Puchik]

Good afternoon,

I am in the process of closing on my first property in Bloomfield. My original offer was for 225k, however, I had the home inspection last week and it uncovered about 50k in additional repairs I was not aware of when I placed my offer. I went back to the bank and requested a price reduction to $175k to cover the repairs since several foreclosure homes on the same street sold in the 150-185k range as recently as May of this year. The bank would not budge and is holding firm at 225k and I am looking at a 100k renovation budget in a neighborhood where the ARV is between 385-415k and I do not know if I should proceed with the deal.

The house is in a great neighborhood, close to local transportation ideal for NYC commuters, has a large front porch and has an unfinished attic that can be converted into a master suite with a bathroom. It also has a large basement that can be converted into a rec room and a very nice sized backyard. The house has really great potential, but two major drawbacks with the house is there is no garage/driveway forcing you to park on the street, and there is about 20 steps you need to climb to get to the front door as the house is situated on a hill. 

Hoping to find some insight to avoid making a big mistake, my gut is telling me to walk away but out of all the houses I have seen this year this one is by far my favorite hands down. Looking forward to interacting with you all!