How do I finance a two flat with a disclose leak in the basement?
Hello BP! This is my first post!! My husband and I are interested in a two flat in an excellent location in good condition. It is currently rented. We believe the deal could be very good at the right price. The problem is that the seller has disclosed that there is water in the basement. There are no floodplains in the area.
Three deals have fallen apart on this property in large part because buyers cannot secure financing due to this disclosure. The seller received a quote of $9,500 to remedy the problem by adding a sump pump and tile drainage. The seller has no money to pay for this repair (they don't even have money to cover half of the cost).
We are able to put down 25% on this property at the price we have in mind and are pre-approved for conventional financing. We could also pay for the repair if necessary. The problem is that we do not have a lender that will underwrite this deal. The basement issue is actually what might allow us to purchase the property at the right price!! Any ideas on how we could finance this deal?
Thanks very much!
Kristin Finn, JD