Paying For Repairs Before Buying

[Anthony Loza]

Hello, I have a duplex with an adu under contract. I have to go FHA since Conventional doesn't cover multi family with an adu. The property is older and the appraiser gave a list of repairs needed in order to be approved for FHA. The seller is willing to negotiate price, but I have to pay for all repairs upfront. Has anyone dealt with a similar situation? This seems risky, since I have to pay for repairs on a property that's not even mine yet. The deal is very good and I'm willing to go through with it, but how can I protect myself to the fullest?

[Austin Steed]

Quote from @Anthony Loza:

Hello, I have a duplex with an adu under contract. I have to go FHA since Conventional doesn't cover multi family with an adu. The property is older and the appraiser gave a list of repairs needed in order to be approved for FHA. The seller is willing to negotiate price, but I have to pay for all repairs upfront. Has anyone dealt with a similar situation? This seems risky, since I have to pay for repairs on a property that's not even mine yet. The deal is very good and I'm willing to go through with it, but how can I protect myself to the fullest?

I've done something very similar in Columbus OH. I was house hacking a duplex with a VA loan and there were some beams that needed to be put up in the basement. I ended up having some of my guys through them up to get past VA inspections.

If you are confident in the deal closing and if it's a good deal it could be worth the risk. 

Some things I would do to make sure you're looking good on closing:

- Confirm the property appraised. Appraisers can most certainly blow up deals. 

- Talk with your lender and make sure that things are looking clean for a clear to close

- Get the addendum signed by seller prior to making any repairs on the property