Botched deal. What next?

[Jesse Prescott]

Hello all!

So I had a bit of a "lessons learned" experience recently. Bought a 4 unit property in Pittsfield MA. I knew that there were repairs needed. Estimated $15k electrical work needed immediately, foundation work needed within the next couple of years, then a bunch of small things, plumbing leaks, new doors, redo bathrooms, etc.

I completed the purchase and as work was being started, I found out that there was a lot more that my realtor downplayed to make the sale. Apparently the circles in the area are pretty pissed at the realtor, some are wanting to go after her. I said I wouldn't be pursuing it, I just want to move forward.

Overall repairs I was thinking would cost me somewhere in the ballpark of $30k. Now it's looking like it'll be double that, call it $75k

So in my calculations, I do always budget more than estimated, because I know things always go over budget. So I did already have some wiggle room, and I do have the finances to make the additional repairs, but is this just going to turn in to a money pit that I'll always be pouring money into?

Is there a way out for me? Do I sell and take the loss? Do the repairs and flip or maybe refi?

Any idea or advice would be greatly appreciated. Or even just a shoulder to cry on haha.

[Jesse Prescott]

Thanks all for the replies.

@Shaun Weekes That is currently what I was figuring. Repairs have started and the property manager I have that's organizing everything seems pretty great so far.

@Steve Vaughan Thanks for the kind words. I do feel like I got a pretty good price. It was originally listed about 30k under nearby comps, and I got another 15k taken off after the inspection and estimate showed about 15k needed for the electrical work. So all in all, I think even with the additional repairs, it'll still end up being a decent investment, just not the amazing one I thought it would be.

@Charlie MacPherson I think it was less about anything illegal, more just taking advantage of my ignorance and the fact that I wasn't local. There wasn't really anything that wasn't disclosed, more that things that were a big deal were treated as it was just some minor TLC that was needed. One example was "Knob and tube" wiring. It was disclosed, but I didn't know it was a big deal, and it wasn't made clear to me that it was. I was told recently that it was suggested to her that she did tell me and her response was "What, and lose the sale?" But I don't think it was really anything that was hidden or not disclosed.