First rental property purchase - need advice on roof

8 Replies

Newbie investor needs advice.

We made an offer of $146k on a 2009 single family house, which was originally priced at $175k and seller reduced to $159k and further reduced to $149k. The offer of $146K was immediately accepted. During the option period, it was found that the roof had hail damage and it is at the end of life. Seller was willing to file an insurance claim for the hail damage. It is only 22 days before the closing while the seller's insurance has not sent an adjuster yet. My roofer is concerned that the insurance claim can not be approved prior to the closing day. What can I do now? Any advice for me. I heard that it is tricky for an insurance claim when a house is changing ownership. Thank you for your time in advance.

it wont happen in 22 days. you can either try to get seller concessions, money on the side (illegal) or just bite the bullet and pay for it after closing.

you didn't see the roof damage before PA was signed?

Your agent should have asked for a roof inspection. Were you represented by an agent? 

Do you know for sure that an insurance claim was filed? I would ask to speak to their ins. agent.

When you find a discrepancy during the option period you can then renegotiate the terms of the contract. They might be stringing you along so that your option period expires...

Wishing you the best.


I am represented by my agent. During the option period, the inspection report indicated a possible roof damage. We filed an addendum that sellers agrees to file insurance claim if our roofer also sees roof damage. Sellers accepted and signed the addendum. Based on what we have in the addendum, sellers have complied to all the terms: they filed their insurance claim after our roofer sees the roof needs repair/replacement. I have expressed our concern to our agent that insurance company moves slowly and we may not get the insurance approval before the close of the house. She said that the seller's agent is fully aware that this situation needs to be resolved before closing. She told me that the sellers filed their insurance right after our roofer's inspection results. Need any advice on what I should do. Can I ask for the extension of the closing date? Or just wait and ask for extension when it gets closer to the closing date. Will also ask to talk to their insurance company. Feeling a bit frustrated as a newbie investor. This is my second rental property hopefully we can close this house.

TJ, we had to reschedule our house inspection twice during the option period: once due to seller emergency eye surgery; the second time due to the house had issues in power and it took electricians a couple of days to come out and fix the house before we can send an inspector there. We did extend the option period for one week, while the closing day never moved. Now we found roof damage and we have only 22 days for closing. Worried how it would work out for us in the insurance claim by seller when the ownership of the house is changing.

Sounds like your agent handled things appropriately. Just stay in touch with your lender and title company with what's going on, it'll work itself out. Just remember, these are not problems, just part of the expected business....keep your head up. :)



Thank you! I can't really take credit...I LEARNED THAT HERE ON BP! I can't quote the podcast 'cause I'm listening to about 4-5 a week. 

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