Fully Rented MultiFamily with Mold Needs CAPEX.

[Krystin Habighorst]

Hello! 
I'm a newer investor, and have recently gone under contract for a fourplex. The inspections shows LOTS of CAPEX needs, as it sounds like the last 8 years have been minimal or deferred maintenance on the exterior. Fun fact: The bathrooms vent to the attic, so needless to say the inspection shows organic growth up there too. Lots of it.

I’ve a few concerns: 

1. If the seller can’t finance remediation, is there an alternative for me to pay for it, stake my claim on the property, and yet still have him own/manage it (for all of the liability reasons)? Subject to comes to mind...?

2. Is it worth a possible remediation of 15 to 75K due to timing? Never seen this before... and it is fully rented right now. Also, I do have the funds available to accommodate this along with financing, but not if financing is relinquished due to mold (not sure if that’s a thing yet). 

3. How much is too much? In addition to this, all windows need replaced (egress and age). The roof will need to be reinspected when the weather warms up but has major ice dams and icicles already. Thoughts on this package as a whole? I'll obviously be offering less, but I think all the major CAPEX has been hit here! Within city limits so limited to contractors only as opposed to DIY.

Thoughts are appreciated!