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Updated almost 5 years ago, 01/18/2020
Due Diligence question
Hello BP Family,
I am looking to get advise on a CRE due diligence issue that pertains to negotiations. Here are the specs:
6 unit brick multifamily Apt building-priced at 569,000- negotiated down from asking 600,000
6-2bd/1bth apts currently does 4700 per mth-rent currently about 20% under market
at the start of due diligence was 100% occupied-That is what I based my offer on building performing at 100%
tenant just gave his 30 day notice -so before closing the building will have 1 vacancy performing at 84%
The inspection also turned up 15k of safety violations
I believe both are points of renegotiation-I'm just not sure how much is my question
-I was going to ask for 15k of a closing concession to cover the safety issues
-but how much is considered acceptable/reasonable to decrease the price for the vacancy? If I am correct on this point.
I am looking forward to the communities responses and thanks in advance for your assistance and advice.