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Updated over 7 years ago,
1st time investor, 1st offer accepted and now..1st inspection
Hello everyone,
Around 6-7 months ago my wife and I stumbled onto BP and decided to start learning as much as we could with the intent to head down the real estate investment path. It's taken us a little while to find a property with the right numbers, right area, etc, but we have an accepted offer! Very exciting stuff. The property is a fully rented triplex around ~3600 sq. ft.
Here's a look at the numbers.
So here I am on the other side of inspection asking for a little advice. There were a few items that were identified.
- Live knob and tube wiring throughout (Google says ~$15K+ problem)
- Insurance concern (higher premium)
- Fire risk (Attic has fiberglass insulation over K&T
- Expensive to remove
- Warping of roof shingles due to lack of proper ventilation in attic (Google says ~$5-10K problem)
- Need to replace / repair roof
- Need to address ventilation issue
- 1 furnaces and 1 hot water heater are at the end of life (Google says under $5K problem)
- Known prior to inspection, so I'm comfortable with this.
My intent is to work on getting quotes from professionals for addressing these issues and to go back to the seller in regards to the K&T and the roof. If they won't budge on the deal, I'd rather walk and consider this as a payment towards my RE education than sign up for such expensive repair items w/o any seller contribution.
With that said I'd love to figure out a reasonable way to say "Yes" to this property. Can anyone help me understand the following:
- Cost for addressing K&T and how necessary it is to address it
- Cost for roofing replacement (3 story, 3600 sq. ft. building. I'm estimated roof sq. ft should be around 1200)
- Tax credit possibilities for above repairs
- Any personal experience / recommendations for negotiating?
Sorry for the long post, and any help is much appreciated.