Coronavirus scare - what to do with BRRRR plans

[Alice Huang]

Hey all,

Here's the situation. My business partner and I submitted an offer on Wednesday last week for a SFH in San Antonio. The sellers countered and we accepted on Thursday. It is our first deal as partners.

We have signed on Thursday and they have yet to sign and it's already Sunday.

Friday my partner and realtor did the walkthrough.  Needs significant work.  Smells horribly.

Initial offer: $95,000

Counter: $102,250

ARV: $175-185K

It needs at least $40k of work.  

Now the question is, do we just wait it out?  My friends in Europe are under lockdown.  They are forced to be quarantined already.  Australia has talks of lockdown.  I am honestly worried that US will eventually go under lockdown too.  

What would you do?  Walk away on the deal or go through with it?
 

[John Teachout]

Move forward. This virus thing will be behind us a few months from now. There may be economic carnage but not everyone will be out of work, people still need places to live and it sounds like you have a deal with adequate margin. Regarding "smell", that can be mitigated. I'd be more concerned about any more major repair (electrical, plumbing, HVAC, roof, foundation, etc). If it has major issues, you can try renegotiating the price. (assuming your contract allows that)