Turns out to be a tear down house

[Mark Gaskins]

Last week, we had the highest bid on a house in GA...offer was As-Is no contingency because our agent and the wholesaler and a GC (who turned out to be staged by the wholesaler) said the house needed $20K in work...I estimated $45-50K worse case scenario.

That wasn’t event close.

House needs everything. Roof, HVAC, Plumbing, Electrical...then, the coffin nail...it has asbestos! 😩

There are two tenants in the home on SSI...but, my question is HOW could these two folks live here??? Escrow isn’t closed yet and right now I’m only $5000 in...considering walking away as the cost is more like $100K+.

Our plan is to hold it and let the value rise enough to make moves on it. Our fear is the condition of the property being so bad...Cam we be sued by the tenants for inheriting this mess? Can the city force repairs sooner than we are ready? What would you do now that you are about two weeks out from closing in a trash property in a decent area? Note: ARV for 2/1 flipped is $250K.

[Mark Bosworth]

Don't assume you will lose your earnest money.  There are lots of ways to get out of a contract.  Get some advice from your realtor or a lawyer.  Perhaps your financing will fall through, once your lender knows what the property needs?  If it has asbestos and the seller did not disclose then that should let you out of the contract as well.  (Selling "as is" is one thing, knowingly not disclosing something is fraud).  Get creative and contest the contract.  At a minimum, you can settle for a percentage of your earnest money.