New rental purchase help

[Cody Stegeman]

Hello all! I'm in a frustrating situation I haven't experienced before and am looking for some insight on how to approach the whole thing. I recently bought a triplex, after we had closed and the property manager who was working for the previous owner informed me that the hot water heater in one of the units stopped working a few days ago. I'm in MN, I know that's against disclosure laws with RE transactions, but the previous owner is being obstinate. I found out from the tenant they had been without hot water for 15 days ( occurred right after my inspection), so I replaced the unit to alleviate the problem. I sent a copy of the bid from my plumber to the previous owner showing what he owed me , and he is saying he will only settle for 400/1100 since "I get a new hot water heater". What should my next step be?