But to avoid offending the seller, you might use some objective numbers, perhaps even get bids for the roof, hvac, and others (the basement water issue could be quite major to do properly)...Those could get into the 10K-20K range.... and an offer adjusted to reflect those objective amounts would help justify why you are offering 50K, for example, and not 71K....

Do you believe it's an accurate reflection of the value?

Any reserve money for taxes, insurance and capex reserves all came from our side.As a CPA that understands financials, also I have bought and sold over 1000+ units, I haven't ever seen where the cash reserve amount would be reflected on the P&L as it a balance sheet item.

The previous owner paid $69 for the same home (we paid $48) and I believe their taxes reflect the higher price.We're about to do our due diligence and have an inspection, including an HVAC inspection on our old furnace.  

Just make sure the monthly rent amounts you are inheriting are reflective of what the market is saying they should be.

Before clients agree to a purchase price they think reflects a property’s distressed condition, offer them this checklist of items to consider along with an appreciation of what can happen once the acquisition has closed.

Great Andrew thank you your budget cost sheet use them for referenceBtw how do you find the figures from homeadviser are they accurately reflect the true market price?

Items included in this would be welfare/cash assistance/child support/TANF then minus expenses she claims like childcare etc but you can ballpark it until you get thee official amount and then back adjust the tenants ledger to reflect the correct amount.

Some of these are FSBO but a lot of them are represented.My favorite so far is the pic of the bathroom, and you could see the reflection of the guy taking the picture, naked, in the glass shower door.Had no idea there was actually a blog of this.

@Gerry RaeThere is a thread herehttp://www.biggerpockets.com/forums/93/topics/1847...Arizona RegsDisclosures in a Transaction:In accordance with the Commissioner’s Rule, R4-28-1101 (B), a licensee participating in a real estate transaction must disclose in writing any information the licensee possesses that materially or adversely affects the consideration to be paid by any party to the transaction, including:Any information that the seller or lessor is or may be unable to perform.Any information that the buyer or lessee is or may be unable to perform.Any material defect existing in the property being transferred.The existence of a lien or encumbrance on the property being transferred.In accordance with the Commissioner’s Rule, R4-28-1101 (E), a licensee shall not act directly or indirectly in a transaction without informing the other parties in the transaction, in writing and before the parties enter any binding agreement, of a present or prospective interest or conflict in the transaction, including that the:Licensee has a license and is acting as a principal.Buyer or Seller is a member of the licensee’s immediate family.Buyer or Seller is the licensee’s employing broker, or owns or is employed by the licensee’s employing broker.Licensee or a member of the licensee’s immediate family has a financial interest in the transaction other than the licensee’s receipt of compensation for the real estate services.In accordance with the Commissioner’s Rule, R4-28-1101 (F), a licensee shall not accept compensation from or represent more than one party to a transaction without the prior written consent of all parties.NOTE: The above listed disclosure issues reflect only those requirements in the Commissioner’s Rules.