24-Unit Multifamily- Contract Negotiations & Closing Costs

[George G.]

Hi guys. Here's an update from a previous post and also seeking some suggestions:

We are in the process of getting accepted on a 24-unit building in Texas. It's a hot market. The broker suggested we put $5,000 as non-refundable after 10 business days because our lender will take 45-60 days to get us the Fannie Mae loan. Since it's a competitive market, we don't mind it.

So the big question is what all should we perform in those 10 days to determine whether we will go ahead or not? After looking at all the closing costs, it's potentially pricey. We don't mind the closing costs if the deal is happening.

What all would you look at in those 10 days?

1. HVAC, Roof & Plumbing inspection.

2. PCA, Phase 1 & Appraisal after we are committed? These are pricey. If the inspection is good barring major defects, we are good to go. In that case, we won't mind these additional expenses.