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Updated almost 3 years ago,

Account Closed
  • Investor
  • Madison, WI
4
Votes |
6
Posts

Inspection Amendment / Difficult Seller

Account Closed
  • Investor
  • Madison, WI
Posted

Hello BP Community,

I am currently under contract to purchase a nine unit multifamily property which includes an 8 unit apartment complex and a single family home.

Early last week, I received the inspection report back from the property inspector. The report identified the roof having minimal useful life remaining, the boiler for the apartment complex being towards the end of its useful life, and also negative grading for the apartment complex, resulting in water running towards the foundation instead of away from it. 

I reached out to obtain quotes from contractors for the cost of replacing the roofs on the property, and the cost for obtaining a new boiler. I haven't heard back yet on the boiler quote, but the one for new roofs came in at $35,000.

I put together an amendment to the purchase agreement requesting that the seller provide me a credit for the cost of new roofs, and sent it yesterday for his approval. The response that I got back from him was that he intended to reject the amendment since there are other interested parties on the property.

From experience with buying investment properties when something substantial comes up for capital expenditure items like roofs being at the end of their useful life, is the request that I made a reasonable one? I'm trying to determine how to navigate this to come to agreement but my thought is that some sort of credit is reasonable to ask for. Thanks for any input or advice. 

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