Making the offer. Full Price or reduced price

[Jonathan Jewell]

How you all doing fellow Bp'ers.  Gotta another question for the group.  I came across a multi-unit, that  did a walk through on and I want it.  It would be my first, just an FYI.  But  it has all the ingredients, great location, safe area, long term tenants, which I met and interviewed each one of them.  Cashflows pretty decent too.  The thing is everything is dated I mean everything.  Its also has some trouble spots that are in need of immediate attention.   I estimated the repairs and some of the upgrades are going to be around $15K  maybe even a little more once I open up the problem wall.  (water leak from outside)  So here is my question: 1) Should I submit a full price offer pending outcome of acceptable appraisal and inspection, just to get it under contract knowing I'll be negotiating a lower price later 2) submit my offer with my adjusted lower price with or course the appraisal and inspection clause 3) Go real low (like worst case scenario repairs and waive the appraisal and inspection clauses).  I wanted to go in strong with at least 2 options the seller can choose from.  Your experience and insight would be greatly appreciated.  Also would especially like to hear from @Cody L. , @Andrew Johnson , @NaDean Bowles and @Jay Hindrichs on this .  Thank you!

[Austin Fruechting]

Originally posted by @Jonathan Jewell:

Thanks for the advice guys!   I just wanted to clear something up.  

When I asked the question in regards to option #1.  Its not with the intent of hammering the seller on every nook and crany in regards to repairs to get the price down.   Its with the intent to "tie up the property" per se, and reasonably ask for a lower price based on the appraisal and inspection.  I mean there are some glaring obvious issues standing out like a full rotted and soaked wall, broken windows etc.  Its obvious to everyone  (seller, seller agent, myself, partner) that, those things will have to be addressed.  I was just thinking it would benefit all parties involved knowing phase 1 is complete (a contract has been signed and we can move forward with the rest).  

 Your offer and contract price should be reflective of all issues you are mentioning that are glaringly obvious. A renegotiation later based on issues everyone knows about isn't looked upon kindly. If the appraisal supports your contract price and the inspection doesn't reveal anything major beyond what you can see, then you should stick to your contract price. 

Now if the inspection reveals larger hidden issues behind the wall that you can't determine at this time, or the appraisal comes in lower than your contract price, then renegotiate. That's reasonable.