Negotiating U&O items with seller on an 8 unit

[Steven Hellinger]

I have an 8 unit apartment building under contract. I already negotiated the sale price. We had our home inspector and also had our U&O Inspection’s (heat, chimney and electric). We found about $6000 in items that have to be fixed to comply with U&O and get our cert. We also found about $4500 in other items the inspector found (radon, 1 oven not working, a few small leaks, gutters clogged and on minor roof repair, done electrical and plumber work). What is the best way to negotiate these items with the seller. I already have about $3000 into the deal for all the inspections, so I don’t want to walk away. It really is a very solid deal. Should we ask for a seller assist or should we try and have the seller repair all the items need to pass U&O? I don’t want to lose the deal, but also the additional expense of $10500 is tough to swallow . The property is 8 units selling price is 575,000 rental income is 85,600 a year. I have analyzed the deal and it is a good deal. Positive cash flow every month of about $1600. Not many small multi unit apartment buildings for sale in my area. I want to try and scale up quickly so I feel my niche right now is 5-20 unit buildings. This one fits in perfect. Any help in best way to negotiate the unexpected expenses would be greatly appreciated.