How to cover roof repair before purchase

[Evelyn Randolph]

Hello, BP Community!

I reached agreement with a seller to buy their 12 unit building at a very good price, but the property is located in an area where I'm required to have windstorm insurance because it's location close to the Gulf. I can get coverage through Texas Windstorm Insurance Association (TWIA), but they would not insure without a new roof that meets their standards. The bank I'm getting the loan from requires insurance to be in place prior to closing.

Because I'm buying at such a good price, the seller will not pay for the roof. I have the funds to pay for the roof replacement, and I would pay for it ahead of the actual purchase, but hate loosing on the tax depreciation on installing a new roof since I'll be paying for something I don't own.

Are there any strategies I could use to still claim the depreciation, or any way that the transaction could be structured such that I don't lose on that tax benefit?