Zinsco Panels in Apartment Complex - Should Seller Credit?

[Sam Rust]

I have a 64 unit apartment complex under contract here in Colorado, and we are wrapping up our due diligence. In our unit walkthrough we determined that all the unit panels are Zinsco's, probably original to the property (built in 1968). These panels are outdated and will likely affect our ability to get insurance, and thus a loan, on the property. We are planning to replace them either way (estimated cost of $50k total), but I'm wondering if we should go back to the seller and ask for a credit?

https://energytoday.biz/blog/4-outdated-and-unsafe-electrical-panels-that-could-be-hiding-in-your-home

A bit of background, this property is under contract for $7.55 million, and has good bones with new roofs and a new pool system. The interiors of most units will need to be rehabbed, and we anticipated initial rehab costs in the $300,000 range. I don't want to retrade the deal, but this is also a life safety concern that probably will need to be dealt with whether we close or not. 

What are your thoughts?

[Matt Popilek]

I think if you have an insurance company advise that it needs to be changed in order to insure it you have better negotiation stand point. I have seen re-negotiations work, and not work.  In Denver I would imagine that would be tough considering how hot the market is...depending on how educated the Seller is. I would probably try for the funds, but be prepared to close with out the help.