Take this or walk away..
I am new investor under contract on two properties by the same seller RE investor - turn key. Both houses cash flow 150 -200 per month and are already occupied. I am required to pay $2500 per property for this service-- tenant vetting, other home certifications etc. One home appraised for the asking price value. In other words seems like I am purchasing it for market value. Its also in a declining neighbourhood so my concern would be the exit plan as well as this not really being a deal. These are my second purchases simulataneously and I do not want to make costly decisions in the future. Others advise / perspective will be greatly appreciated.
1. What does it mean for me when a home does not appraise above the asking price?
2. What would more seasoned investors do? Walk away or purchase..?
3. What do yoll think of the upfront fee - $2500?
4. What are the consequences of breaking a contract?
Thanks!