Inspection Report on First Offer and Inherited Tenant

[Brandon V.]

Hi Everyone,

Inspection

I just had my inspection done for my first long term rental, it's an upper and lower duplex and here are the noteworthy items:

1. Minor water damage on the lower unit bathroom coming from the upper bathroom when the tenants get out of the shower and the water runs down.

2. Two beams in the basement have some frays across where they sealed some asbestos and the inspector said that it would need to be sealed again with a asbestos contractor.

3. Furnaces are a little older than I expected, I was thinking about 10 years old and they are actually about 17 year old, but they have been well maintained.

4. Roof has little damage but it is 18 years old and the inspector thinks it has about 5-7 years left.

5. Other minor items per usual. 

This place will cashflow about 300 per month and I have budgeted about 7000 in repairs and it would still be giving me a 15% COCR. Would you change the offer at all based on these findings? I'm leaning towards a $2,000 closing cost credit or price reduction? Does that seem reasonable?

Inherited Tenant

When I first offered to buy the duplex there was an inherited tenant living in one of the units and they were on board with staying.  A week later she told the current seller that she would be moving and she expected to move on January 7th.  We intend on closing on December 30th at the end of the year for the tax benefits.  They are on a month to month lease right now and ideally I would want the tenant cleared out and the unit cleaned by December 30th.  How would you go about negotiating that?

Thanks everyone!

Brandon