Credit at closing
Hi everyone.
I have a question to put out there. We are currently negotiating our first investment property purchase and have ran into a snag. The property is in need of some repair work, which totals an agreed price of $19,000.
The purchase price of the property is currently 235k and is a 4 unit multi fam.
The seller agrees to reduce the price of the property by the desired 19k amount to $221,000.
The problem we now have is we will not have any cash at closing to perform the repairs as we would have if issued a credit. Our lender will only allow a 2% credit on rental properties, so that leaves us with 4,370 at closing and a sale price reduction of 16,630 to 218,370.
This leaves us with a measly $54 in mortgage payment savings and no cash. It would take us 25.66 years to recoup that money.
So my question is, what other options are available to us at this time, if any?
I could always ask the seller to make the repairs prior to the sale but the seller is out of state now and also with another offer on the table initially my fear is they would not deal with us any further.
Any help would be much appreciated.