Updated almost 3 years ago on . Most recent reply
First deal is falling apart, need help
-duplex 228k purchase price rented at 950/side. 3b 1.5bath a side. Market rents 1250-1350. Leases set to expire feb 2023.
-seller renews one lease while under contract a full year at 950
-First year cashflow goes from 5000-7000 range down to 1400-2600
-Lender needs more time to close, now seller wants me to put 1000 more EMD and make it non-refundable
This property has me stressed. I like it because all mechanicals, roof, interior was all redone from the studs in 2021. It should make a good long term hold. Not sure what to do. I'm thinking about countering saying that the other lease cannot be renewed, waiving my financing contingency but keeping my appraisal contingency. Would appreciate any insight thank you BP.
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
Walk away. Thanks to the seller, you're committed to a ridiculous lease renewal on one side, and what do you think will happen when the other side finds out, and their lease is up for renewal. This is a bad deal now, that will get much worse. "Know when to fold 'em,...". Whatever EMD you have in it now that you can't get back, is lost. Don't add to it by trying to fix something that has no way of fixing it...thanks to the lease renewal.