Old roof/HVAC - Looking for advice..

[Balaji Varadharajan]

Hi All,
I am looking to invest in property for renting out in the first couple of years or so, and then will move in with my family later on. I am not looking for a great cash flow, though about $100-$150 per month has been my benchmark.

We found out through a previous inspection report ( two years back) on the house we are interested in, that the roof/HVAC (heater/cooling unit/condenser etc) are all nearing the end of their service life. All are 12-15 years old. None of them were replaced in the time since.
I can allocate some % of rent as capex, but it would make sense only if the upcoming repairs/upgrades are atleast a couple of years out if not more. Home insurance will not cover an old roof, I presume.

The house itself is in a desirable location and the list price is competitive for the area. I put in an offer before we saw the inspection report, and looks like the buyer will accept it.

How would you analyze this situation? I am an dilemma whether to go under contract as is or ask for a price reduction given the potential expenses in future or just drop out. Could any of the repairs be taken care of, through a home warranty, in future?

Thank you.