How would you handle this inspection report - My first deal

[Alex Gordon]

So I'm under contract on my first deal. I offered full price and knew there would be some issues on inspection.  Its a Duplex built in 1971.  Its in interesting shape as the building itself looks to be in excellent condition.  Both units have been occupied by the same tenants for 20+ years.  The lower tenant's apartment is in good shape with no significant issues.  The upper unit is occupied by a hoarder.  Considering, he is a pretty clean hoarder but just has hundred of books lying around.  It appears the kitchen sink, toilet and hot water to the shower and appliances have not been working for some time.   These are new issues and were not known.  There's some small code issues that I can fix.   Here's the main list;

• Roof- Roof is at the end of its useful life 3-5 years at most (5-7K)
• Gutters need to be repaired and/or added ($500)
• Window screens (?)
• GFCI outlets ($150)
• Washer and Dryer not working ($400)
• Safety glass in bathrooms (free - I can do this)
• Replace toilet ($400)
• Fix hot water supply to shower ($500-1000)
• Water heater is original ($500)
• Windows seals as windows are foggy-replace windows (suggested but not required)
• Upper unit needs new flooring and countertops likely. 

How would you negotiate this with the sellers?  I'm guessing they have been pretty hands off on the property and may not want to fix the issues themselves.  I'd be willing to take the property as is if discounted appropriately.  Do people sometimes give the sellers the option, like, fix the plumbing or discount X?  Anyway, just looking for some advice as I'm meeting with our realtor today.  Thanks

[Matt Moldenhauer]

I would ask for X amount back at closing for repairs. I would not have them do the repairs because it will more than likely be done by the cheapest contractor and probably in a pretty shoddy manner. I'm always leery of purchasing a house from another investor. They might have their reasons, but I look at it as why would they be selling if it's making them money? Have they put off repairs for too long and now have a huge mess on their hands? Is there an issue with a new neighbor that might make the place harder to rent? The list could go on. I would just gather all of the quotes you received and have your realtor submit them. They'll more than likely cut individual cashiers checks directly to each contractor(which can be a pain) for you to give to them.