All Forum Posts by: Duncan M.

Can you still negotiate during a due diligence period even if your sales agreement was "as is"?

The scenario is I found that the duct work in the crawlspace of a single family home I have under contract needs to be completely redone. The cost will be somewhere around $4,000. I do not want to back out of the deal, but I would also like for myself and the seller to meet in the middle if possible.

With an "as is" purchase I know no repair requests are allowed. However, Is it within my right to renegotiate some aspect of the orginially agreed upon terms? I'm up for all ideas, even creative ones.

Thank you!

Has anyone else noticed a discrepancy in the 'Profit if Sold' portion of the rental calculator depending on if you decide to rehab the house vs not?

I know the Profit if Sold formula to be:

Profit if Sold = ARV in current year - Sales Expenses - Loan Balance - Money put into the deal + Total Cashflow since the purchase

where Sales Expenses = ARV * Sales Cost Percentage

I find the above formula to work out great every time I run a scenario where a rehab is involved. (EX: Buy a $150k home, put $25k into repairs, and ARV is $200k).

However, this formula does not hold true when no repairs are involved. (EX: Buy a $200k home that appreciates 2% each year)

The formula that mirrors the same outputs the rental calc gives is:

Profit if Sold = Property Value - Loan Balance - Money put into deal + Total Cashflow since the purchase

Does anyone have any insight into this? Thanks in advance!