Watertown, WI · Member since 2016 · 17 posts · 4 votes
I am under contract for a multifamily in the midwest, after the inspection was completed there are some concerns that are going to have to be addressed on the very soon horizon. The siding has some serious issues and some of the mechanicals are at the end of their lives. The mechanicals aren't really that big of a concern but the siding is. It will cost about 15k to replace and pretty much needs to be done now, this is about how much the property will cash flow too, after debt servicein the first year and a half of ownership. I would be very interested to hear how some experienced buyers/sellers would suggest adjusting the offer?
I am under contract for a multifamily in the midwest, after the inspection was completed there are some concerns that are going to have to be addressed on the very soon horizon. The siding has some serious issues and some of the mechanicals are at the end of their lives. The mechanicals aren't really that big of a concern but the siding is. It will cost about 15k to replace and pretty much needs to be done now, this is about how much the property will cash flow too, after debt servicein the first year and a half of ownership. I would be very interested to hear how some experienced buyers/sellers would suggest adjusting the offer?
Beat them up on price, fix it once you own it.
I'd suggest not negotiating to have them fix the stuff; they will have an incentive to hire the cheapest folks to do it, rather than hiring good people charging a fair price to do the job right.
I am under contract for a multifamily in the midwest, after the inspection was completed there are some concerns that are going to have to be addressed on the very soon horizon. The siding has some serious issues and some of the mechanicals are at the end of their lives. The mechanicals aren't really that big of a concern but the siding is. It will cost about 15k to replace and pretty much needs to be done now, this is about how much the property will cash flow too, after debt servicein the first year and a half of ownership. I would be very interested to hear how some experienced buyers/sellers would suggest adjusting the offer?
Beat them up on price, fix it once you own it.
I'd suggest not negotiating to have them fix the stuff; they will have an incentive to hire the cheapest folks to do it, rather than hiring good people charging a fair price to do the job right.
That's a good suggestion. Thanks for the heads up on this approach.