Thank you everyone for your feedback and input.
Soooo... I am still in the deal BUT only because I wanted to get a quote from a contractor and do more due diligence. I got my quote for the basement and window work. I have am requesting that the seller hire a contractor and engineer to assess and do the work. I requested permits be pulled and the town building inspector approve the work prior to closing. I also requested 25k credit to repair the windows, exterior doors and at least 1 of the water heaters. This is not enough to cover everything but it puts a huge dent into. I will need to put 10k to do the rest of the work. I totally understand where everyone is coming from and suggesting I get out, which I still might. But I figured if I can get the seller to open that can of worms and handle that expense it will put me and the property in a better position.
If the seller does not agree to my requests, which he might not, I will be backing out because all those items are above my skill level and I think it will lead to more issues down the road if I were to tackle it.
More info on the property:
this property is located in a good neighborhood, off a busy st but good neighborhood. The property has separate meters for each unit, electric baseboards in all ( so no furnace or anything like that to worry about), and separate water heaters. It is on town water/ town sewer so that's a plus. The 2 bed is move in ready, it is the more updated unit. Of course there are items I will want to address in the future but its in good condition. The other 2 units will need new carpet and paint to start. Eventually I would like to update the bath and kitchen but currently in decent condition. All electrical is updated so no nob and tube. All plumbing is updated. The only case iron is the pipe to the road which I am having inspected as well. Roof and decking are new, redone in the past 3 years.
Someone had asked about cash flow. I am calculating $700/month w/ 10% vacancy, 5% capex, 5% repairs/expenses. I'm estimating ARV to be around 600k ish .
With this additional info, Does everyone still feel its to risky? I have been reading everyone's posts and am VERY grateful. I am prepared to cut and run but I just figured I would try and see if seller will take that cost off my hands. Thoughts?
