Conventional loan with repairs questions for a Rental

[Courtney Olson]

Good morning,

I’m looking at a 4/2 brick home on an acre Lot in AL and I live in FL. I like the location and it’s currently rented. The structure and roof is good with some issues I want fixed:

-covert fuse box to 200amp cb panel

-storage shed/garage water damage

I’m seeking advice on how to make an offer with either the seller repairing these items (another investor I’m not sure I trust to do it properly) or asking for funds at closing (escrow). 
I believe the most I can ask is 2% for concessions but I’m wondering how the process would work for holding funds in escrow for repairs and satisfying the lender. 

Thank you,

Courtney

[Benjamin Aaker]

Are you trying to purchase without using an agent? I'd recommend asking this question to an attorney or a RE agent.

If you insist on doing it yourself: If you don't trust them to do the repair properly, you should ask to have your contractors come in to bid during the diligence period. Then you can negotiate a credit for these amounts at sale.

It is possible that your lender will not offer you a loan with an older fuse box. In that case you'll need to ask the seller to replace at his cost followed by an inspection that you will pay for. You'll need to make sure that the sale is contingent on your satisfaction with the repair. Again, not legal advice here, but general recommendations - get an attorney to write it up.