Under contract and now the issues start rolling in...

[Jose Corbera]

Hi All,

I'm under contract for my first property that should close within the next couple of weeks. It's in a fantastic location, perfect for the type of tenants I'd like to attract. it seems the electrical panel is a mess.

The current problem: the electrical panel is a mess. In its defense, the system is over 30+ years in age and can be replaced but it is not necessary according to the electrician. In replacing the panel, the entire service entrance (meaning the meter can outside the room) will have to be replaced as well. A job of this sort would require pulling a permit involving FPL (power and light company) to disconnect the main feed. In pulling a permit to replace such a system it would raise a red flag for a city official to inspect the entire home when the job is to be inspected for approval and can open a can of worms for further work to be done for code purposes. Not a complete rewiring of the home but adding specific circuits that are not in place and can be used for future use which do not deem necessary now. Estimated value of the workd can be $3,000 or more.

Aside from the elctrical panel, the house is in pristine condition, it's old but in great shape. It's a corner unit with a very large backyard compared to its neightbors.

My idea was to buy the house, update the kitchen as it's a bit dated and then rent it out within a couple of months. Now that the inspector and electrician have told me that just updating the panel will run me about 3k to 4k, and knowing the kitchen will run me about 8k to 10k, I'm confused of whether I should move on to another property or just bite the bullet and close on it. After searching for properties for 5 months now, having a deal fall threw the cracks due to an out of whack appraisal, and my limited budget, I am concerned that the next property will be the same or worse. The silver lining to this property is the location, I can always fix the panel immediately and wait on updatng the kitchen.

Any advice would be great. Thanks in advance.

Jose Corbera