Multi-Family and Apartment Investing

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Catherine Javier
  • FL
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How to negotiate AS IS Duplex after Inspection?

Catherine Javier
  • FL
Posted Jan 21 2022, 02:04

Hello everyone, Newbie here. Needing your expert opinions.

My spouse and I are under contract for a 1942 Duplex in FL. Yes it is old and we are wanting to BRRR this in the future. This is our first time in real estate and we are both overwhelmed.

The price we agreed before inspection was  192k. We are also expecting a lot of issues and things that will needed to be repaired and addressed. We are not sure if it is still wise to pursue this deal with the overwhelming defects & issues. Please help & guide us.

The pros: 

1.) It is already rented total of $1975 for both units. Unit A is 3bed/1bath; Unit B 2bed/1bath. 

2.) It is already cash flowing. 

3.) According to the inspector, since the lot is huge, we can still add another duplex in the future.

The cons:

1.) Unit B is grandfathered, if it is destroyed it cannot be rebuilt. (But per our real estate agent, we can still repair)

2.) Lots of repair needed which we know it will have (but we are overwhelmed).

_______

Here are some of the issues:

Main Concern- The toilet drain pvc to cast iron connection is leaking under the home. This has raw sewerage emptying onto the ground (poop & pee). Noted a cesspool drain on the right side of the home.

-Active termite, termite damage in Unit B.  Treated Termite in Unit A

- Both units have some sub floor joist sagging

-Both Units does not have vents in bath & kitchen

- Exposed electric wirings

*** Some are not priorities...

If you were us:
1. Can we still negotiate the price and by how much? Or do we just walk away? We are still under Inspection Contingency.

2. Any idea on how much we're going to spend on the major issues listed?

Thank you so much in advance everyone!!!






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