Mistake Made or Avoided

[Kevin Phu]

I'll get straight down to the nitty gritty. This is going to be a long one so thank you in advanced if you make it to the end. This is a recent property I just cancelled contract on due to seller and I not coming to agreement on repairs/credit. Did I walk away from something that could've worked or did I do the right thing?

Property Info

Purchase Price: 446,500

Location: Ventura County, CA (SoCal)

4 Bedroom/2 Bath

Tile floors throughout except for carpet in bedrooms

Minor kitchen remodel  ~2 years ago

1,193 sq ft/6,0001 sq ft lot

2 car garage-attached

5/10 minute drive to work

T

Loan

VA- 30 years, 0% at 3.625%

PITI: ~2,400/month

VA appraisal came in at 447,000

Plan/Goal

Reduce expenses from renting to save up capital fast to buy properties. House hack this property for a minimum of 1 year to satisfy VA loan requirement.

Rental income from the the 3 bedrooms: ~$2,250 ($750/room includes all utilities; potential for an extra $25 for a garage spot)

While house hacking, save up a down payment to purchase a similar property using an FHA loan.

Expenses

Mortgage: ~2,400

Utilities: ~150

CapEx: 100 (Roof was done in 2012, water heater may last a few more years and is covered by warranty for first 13 months)

Maintenance: 100

Total: 2,750

Current expenses from renting: ~1500

Out of pocket: 500 (equaling 1000 saved per month)

Home Inspection Call Outs

-Main electrical panel does not have main disconnect (national violation) + exposed wiring in garage

-Non fire rated plumbing going through garage firewall for laundry hook ups

-Flat spot on roof that shows signs of standing water

-Entry way is a trip hazard (hard to explain but will post picture below)

-Possible rodent infestation in attic

-Windows in 2 bedrooms violate fire egress code (sill is 4 feet high)

-Closet doors in 2 bedrooms are oversized preventing full access (again hard to explain but will post picture below)

-Backyard sliding door doesn't lock

-1 bathroom shower diverter valve doesn't work (pretty cheap fix)

-Attic insulation insufficient

Repairs/Changes right away that I feel are necessary to make rent ready

-Electrical Panel and exposed wiring

-Closet Doors

-Backyard sliding door

-Rodents

-Shared bathroom vanity to allow storage (currently a pedestal sink)

-Master bathroom shower (for personal comfort. Current shower is one of these neo-corner showers that is smaller than a shower stall on a Navy ship. Been there, done that for 6 years...no thank you.)

Seller only willing to credit $3500 max and no repairs (I only requested for items called out in the home inspection)

Did I do the right thing by walking away from this or should I try to get this contract back?