How to include roof price in mortgage?

[Therese V.]

There is a multifamily I'm looking at that appears to need a new roof. I believe the roof will be around $15-$20k depending on if it is a tear-off or not. If I were to make an offer on it, how can I have that extra $29k added to the mortgage so I'm not putting that out of pocket to get a new roof?

Let's say the building is listed at $160k and I would offer $140k because of the roof, can I offer $160k with a seller credit of $20k and get the $20k subtracted from the downpayment owed? So it'd be like $32k downpayment, but minus $20k credit (plus fees, but let's count those out for simple math) means that I'd pay $12k down to the mortgage company and have the extra $20k for the cost of the new roof. Otherwise, it'd be $28k plus the $20k for the roof, or $48k. With a seller credit, I'd be saving money. 

Is this allowed? What other ways can I accomplish that? The roofing company does not do payment plans for investment property.

[Therese V.]

Originally posted by @Michael Boyer:

well, I tend to agree on sellers and major repairs, but remember the sellers  often do required repairs in an inspection in my experience, and, yes, your interests diverge (they are leaving) but the owner will not be on the roof, the roofing contractor will, so if you can agree on the highest quality firms in your area, they probably won't do substandard work or compromise their reputation on one roof job. An asphalt shingle reroof is not rocket science but pretty routine, and some inspectors even note that roofs have to be repaired or replaced in some transactions (or is it flat built up, roof, etc). Use a really thorough inspector and it may be a required repair and there you go....maybe split the costs and you can perhaps have even more say on the work. Another option, get three estimates, average them, and reduce the offer in accordance.it may cost less than you expect (or more, how many units?)..then you have to pay it yourself, but if you can't afford or get financing for what the place  needs in the next couple of years, it may not be a good fit. Or talk to some lenders about your credit idea..i recall another forum on this same topic with some Creative solutions you might search (I think it was a triplex needing a roof) Best of luck...

 I will look that thread up. There is really only one roofing company in the area and they actually just put a roof/siding on a house we bought in April and gave an estimate on another house/garage we own that will also need a roof next year. This property has 2 buildings, but the one that is larger needs the new roof. It's a little larger than the second property we got the estimate on and that one came in about $13k, but it is a total tear off and includes a garage as well. The roofing company also will not do estimates on property that is not owned, so no estimates before we buy something (tried to do that on the last property since it needed a roof).

We've been getting good deals on the "needing a roof" crowd, so I'd like to explore other ways to pay for the roof instead of using our own capital. Now, if they just did some sort of payment plan it'd be so much better, but they don't for investors. I even explained to them they were doing 2 estimates for us and we would be buying more in the future. We used them for some minor shingle work on the first place we bought too.