203k loan or lower purchase price

[William Murden]

I am currently looking at a triplex in my area. The numbers work good for my first owner occupant. However, there is a lot of termite damage and the lines aren't sub metered. The sub metering isn't that big of an issue. I am more concerned about the termite damage and cost of repair. Being that this would be my first deal, should I get quotes for cost of repair and then take that off the asking price or do a 203k to get it up to par? I have no problem walking away from the deal, but since I joined BP, I thought I'd reach out for some advice. Thanks in advance. 

[Alex Johnson]

Do both. The purchase price needs to reflect the rehab needed, and the 203k loan is a way to fund those repairs. If you take the rehab costs off the purchase price and have no more money to do the repairs, you're stuck. If you don't reduce price and choose to do a 203k loan, you just paid too much