Seller Repairs Advice

[Rick C.]

Hello -

I am in the middle of an inspection period for a duplex. The inspection report came up with some significant repairs that need to be done (all categorized as safety issues and major issues). The pre-inspection purchase price was $71k, but the repairs will likely amount to about $20k. For purposes of maximizing my percent return, I am getting a conventional loan and putting 25% down.

I would prefer to get the work done by my own contractors, so I am considering asking for about $20k off the purchase price. However, after closing, I do not want to have to take $20k out of my pocket and away from other investments to do these repairs. I would ask the seller for an assist instead, but I do not believe a standard investment property mortgage would allow for that high of an assist. I also have the ability to buy in cash, but would want to roll 75% of that cash back into a loan for that property after the repairs are done (not sure what the process is for getting a mortgage post-closing).

Does anyone have advice as to how I can a) minimize the amount I put down for this property and b) ensure the repairs are getting done properly.

Thanks in advance for your advice.

Rick