Multi-Family Inspection Repairs Negotiation

[Nate Byers]

Looking for negotiation suggestions after inspection. Suggested tactics? What should we accept? What should we not accept? Other thoughts? 

We completed the inspection on my first multi-family rental (6-unit townhouse style). Like any inspection, a lot of little things, but here are 3 areas that I'm focused on:

1. All 60 windows have broken seals. The glass is fogged and very hard to see through. 
   1. To maintain rental class/rent levels wouldn't we need to replace the windows? Tenants pay utilities, but it seems like something required to be fixed if there is tenant turnover. Estimated $30k for full building replacement.
2. All furnaces are 20 years old (original to the building). Estimated $18k for total replacement.
3. 2 toilets are leaking and the floor underneath the toilet is "squishy"

This is a class B rental. 4 of 6 tenants have lived there 5+ years. 

This was an off-market deal. We agreed to 5% less than the listing. According to our buyer's agent, the market is very hot so opportunities don't stick around long. He's the reason we had access to this property.

[Charles Soper]

So repairs according to your list that’s roughly $50k.  To maintain some form of good faith in the negotiation process you ask for a seller’s credit for $20k-$30k, citing deferred maintenance issues (toilet) for part and tenant retention concerns for the rest.

Optionally, if they won’t budge and you don’t want to pay for it maybe this isn’t the deal to be chasing