purchase during pandemic?

[Jordan Pothier]

Hey everyone, 

I am needing some guidance on what you guys think about moving forward with a purchase on an investment property. I will be staying at this place 1 week out of the month in a basement that I will be finishing while I have two tenants upstairs (both not working at the moment due to this virus), we have 6 months reserves walking into this btw. I got a property under contract in Kansas City Mo before the virus started to gain traction all over the country. This is a probate sale "sold as is" and we have it under contract for 148k 10% down conventional loan. Ever since the virus hit and the market did what it did I have been really considering pulling out in addition to that we are looking at a 10k foundation repair. We are 6 days out from the end of our DD period and not sure what the wisest decision would be. I have a feeling that the aftermath of this is not going to be pretty and the market value will drop (just my opinion), my thoughts in response to this whole thing is to ask the seller to come down 20% plus an extra 10k for foundation repairs that would bring us down to 110k, I feel like that is a fair approach with the unknown at hand plus talk about heading into a recession. The comps in the area are 178k-mid 200's, the strategy is to brrrr this property. This is my first investment property and just want to make a wise choice, what do you think?

[Andrew Syrios]

My thoughts are not to stop buying but to be substantially more conservative. I was thinking 10% whereas you mentioned 20%. That will be tough to convince the seller of but the worst-case scenario is they say no. So while I would probably aim for a 10% reduction given the extra risk, overall we're thinking the same way. More risk = lower offer.