Please help review counteroffer terms, first investment deal

[Jeff Hsieh]

Hi,

I put in an offer for my first investment real estate deal and received a counter offer. The counter offer price is still good and works with my numbers in terms of cash flow positive, but they had some other terms in the counter offer that I wanted to run by the forum here. 

I would appreciate any feedback and thoughts on whether or not these terms are red flags.

This is in California. Property was built in 2008 and judging from pictures it looks move-in ready.

Terms:

1) Appraisal and home Inspections contingencies to be removed 12 days after acceptance.

2) Property to remain in backup status until all contingencies are removed.

3) Seller's choice for all services: Escrow, Title, NHD, and termite

4) Seller will only provide sections one of termite clearance

5)  Possession to buyers no later than 3 days after close of escrow. (currently owner-occupied)

6) Property sold As-Is, therefore, inspections and final walk through are for buyers information ONLY and NOT to be negotiated items beyond this original offer and counter offer

Thanks very much, any feedback is appreciated!

Best,

Jeff

[Frank Wong]

Hi Jeff,

Everything looks pretty good but here are my suggestions.

1. Possession should be at the day of close not 3 days.  If its going to be 3 days have a rent back clause and a deposit from the seller.  You want protection just in case. ( Usually, nothing happens but you need the paperwork done correctly)

2. Make sure your lender can perform within that 12 day period.