Sellers are Getting to Me!

[Maurio Eley]

I'm in the process of buying my 1st rental property buy there are some issues. It's a 2/1 and has been renovated decently so as far as the living space it's in great condition.  The problem is there was some things not done to code i.e. the furnace wasn't installed properly and has to be redone before a tenant could move in, venting for plumbing is being vented in attic, and the minor one is that the water heater has plastic piping going to it instead of the copper.... The seller refuse to do anything because  of the price( 34K ). Being I'm new, I dunno if it is a good deal or not. Not sure of the cost for the work to be done. I estimate 3k-4k. I hope to get $650mnth. Keep in mind that I'm green so any thoughts or suggestions would be appreciated. 

[Jean Bolger]

At that price point you probably won't get the seller to pay for and do the repairs before the sale. In fact, they may not have the funds to do it. And why would you want them to anyway? they did it wrong/cheaply the first time - don't assume they'll do better the second, lol! Find out what it will cost you to get the work done, subtract that from your offer and present that as your new offer to the seller. Now, the seller may already think their price is taking all of that into account... if so, you have to know the comps and the market and decide if the house is still worth their price plus your cost of repairs. 

Don't get mad! The seller doesn't owe you anything, they are merely offering you an opportunity that you can choose to accept or reject. If you start personalizing the negotiation then you are thinking like a homebuyer, not an investor; and you don't want that. Emotion is the enemy of wise investing.