All Forum Posts by: Abe Alam

Quote from @PJ Booth:

Thanks for the input. The different perspectives have provided some clarity. The property will have $800+ after PITI. It's when I subtract 15% rent hold back for vacancy/capX/repairs and PM that there's no $ left. I can likely be less conservative with the repairs and capX initially due to the extent of the renovations. I will hold it, investigate a rate buy down, take the cash out to pay higher interest debt or buy another asset, realize the ongoing tax benefits this one provides, count the wealth building contribution of the asset, and wait. Interest rates will go down one day. Based on this geographical market and RE history, the duplex will appreciate and rents will go up over the long term. I'll buckle up and look for the next one! Thanks!!

How did this turn out? Everyone seems to be suggesting unloading the property, but your conclusion was to hold on to it? If it's not cash flowing hopefully it's in a very high appreciating area... which can be hit or miss with MF AND that nothing unexpected happens that eats into your bottom line even more. Then again, if you aren't selling those gains don't matter a lot. 

The comps actually don't... but many other homes have metal roofs. 

@Andrew Postell

Thanks for the reply. I found a great quote on a shingle... it's tough to beat... I think I might just go with that. 

Good point on OVER improving. 

How much value does a metal roof add vs a shingle roof in terms of the appraisal? I received an estimate that wasn't much more than shingle for the metal option and I know metal roofs can last much longer. This is in a semi rural area where there are many metal roofs.

@Evan Polaski

I'm working with an agent. Did you add an Addendum to the contract to receive cash at close? 

@Steve K. there are no backup offers. This was a probate case that didn't go to market. I think the seller is open to concessions as I personally spoke to them. I'm just trying to decide how to request. Some have suggested an Addendum to Purchase Agreement for a private transaction after closing of 7k or so. I just don't want to have any problems with lenders. 

@Michael Noto

The max seller credit is 2% of the loan which is $3000. Not quite enough to cover the repairs.

@Conner Olsen and @Michael Noto

Thanks for your input. Are you guys aware of seller credit limits on investment properties for financed purchases? 

Ideally, I'd like to ask for 10k on the whole thing, but it’s a 155k purchase and I think I'm limited to a percentage... asking lender this morning. Conner, I'll use that verbiage, thanks! 

@Jake Wiley

Thanks for your detailed response. I am financing the property and I believe there is a maximum amount that I can ask for regarding a credit since it will be used as an investment. I believe it’s something like 2% which won’t cover the full amount of repairs.

Hi,

I just finished inspection on a home under contract and found some things that were not observable upon the initial walkthrough.

Im looking at requesting a slight reduction in price. How do you guys do that? Do you submit an itemized list with prices? Any ideas?

Same situation. 

Realtor opinions are actually telling me selling price would be more like 310-320k. In Fl