Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 10 years ago,
Newbie needing advice for a MFH deal
Hello BP crew!
About to jump in my first deal, I like the numbers and the rent potential several PMs have given me. It's 3 unit, 1 occupied 2 unoccupied, in which the seller needs to approve of an offer before I get to see the units and then I have to option to take it or leave it. He approves, after a walk-through with my realtor(should have brought a contractor!!) I find the following:
- Occupied unit needs roof leak repairs on the ceiling and the roof(approx 16sq ft)
- Occupied unit Surface mold remediated in the bathroom (approx 4sq ft)
- All 3 units need bedroom carpets replaced
- All 3 units have the possibility of lead paint being used(haven't received disclosures yet)
- All 3 units need cosmetic repairs in bathrooms and kitchens
- Exterior needs new paint
- Tree hanging over roof, needs to be trimmed
- Possibility of rats as told to me by occupants
Cabinets, floor laminate, electrical, plumbing, doors, windows are in good shape.
The RE environment here is pretty competitive, the quicker I decide the less risk there will be of losing this property. This house has been on the market for almost two months. Current tenants are very busy, took almost two weeks to schedule a viewing of the occupied unit. Even if I put down an additional $20K to do repairs, I would still like the numbers, but a penny saved is a penny earned, so I need some advice...
Should I blindly ask to reduce the price reflecting my estimated repairs?
Should I get a contractor to go with me on another visit(may take another 2 weeks -_-) but risk losing the property to another investor?
Should I stick with the original accepted offer, avoiding all risks but paying more?
Open to any other options I'm not seeing as well.