Hey everyone, I am currently working on purchasing my first rental property, which is also out of state (I live in Maryland). I have identified a duplex in Cleveland listed at $79,900, and has one long term tenant, and the upstairs unit has recently been vacated. It has gone through three price drops from 99k - 89k - 79.9k
This property was under contract back in April/May of this year, but the buyer backed out (when it was listed at 89k and was fully occupied.)
From pictures that my agent sent (vacant unit), and walk through video of the occupied unit from the listing agent, I did not see anything besides touch up in vacant unit, and possibly replacing front porch steps. I offered $75k with inspection contingency. The listing agent came back with the inspection report from the previous purchaser from May, and asked if I could use that and remove the contingency.
As I read through the report, it became apparent why the buyer backed out
-Loose vinyl siding with potential animals living inside, caulk/sealant missing from trim on doors, moisture intrusion on windows with soft spots and exterior cladding loose, shingles missing from roof with light visible from the attic, cracked floor joists, first floor uneven with large slopes (you could skydive off the leveler before you hit the ground), uneven stairs, signs of inward movement on the foundation with masonry recommendation, active leak in basement pipe.
I'm trying to be creative in making this work. I obviously would need multiple contractor bids for pricing, and then would need to adjust the price down from there.
The long term downstairs tenant is paying $750 and upstairs was paying $800
Is this deal even still worth it?
Thanks!
