First DEAL - HouseHack - HELP
The duplex is in contract, contingent on inspection and us seeing the other side. Our offer was accepted at $279,000. Comparable comps for the area range from $265,000 to $280,000. Of the comps, this home is one of the smallest, but is brick construction and has two large separated basements. There is an attached two car garage that is not split and neither unit has direct access to it from inside. Built in 1969, it seems as though not much has been updated since then. Rents are $1,000 per month however that is the low end of the market in this area. One unit is a 2 bed 1 bath, the other a 2 bed bath.
We went through the home with my father-in-law who is an excellent contractor and we noticed some major items that need remedied such as the roof needs completely replaced now, as there are signs of water damage inside (7'x5' section replaced in the ceiling) and some parts of the roof are concave. The house has settled and the foundation is starting to bow although the owners just recently paid to have it reinforced with carbon fiber straps? The settling has also caused reverse grade where storm water works its way back to the house and makes it to the basement. Only 1 sump pump for the entire duplex. The electrical panel on one of the units needs replaced immediately as it is completely outdated and dangerous. The windows are original (we think) and most of the seals have been compromised. The front stoop is concrete and has settled falling away from the house so the post supports are no longer touching the small overhang of the roof.
All in all we figured to be able to live in it without worry it would be in the neighborhood of $21,000 for repairs. My realtor says to keep the same offer and ask them for the money to do the necessary repairs. But I think lowering my offer significantly and bundling the repairs with a 203k loan would be a better approach, but I dont know what I'm doing. Just thought I would reach out to others. I also initially thought of walking away, our inspection is Monday and will cost us $550, but this is a good area and we could gain some significant equity while we live there and after we leave.
Thanks for your help!