Updated about 2 months ago on . Most recent reply
Should I walk away from this deal?
Hello all,
After our accepted offer we did an inspection and a couple major concerns came up.
The Roof is end of life, there's a furnace that was manufactured in 1988 which will most likely need replacement there is a cracked joist that was amateurly sistered in the inspectors words, and a couple joist that were improperly cut/ notched.
After speaking to my lender he recommended we go the FHA 203k route and that we should try to negotiate the price down for at least the roof repair. Our original offer was 400k with 10k sellers concessions, what were thinking of counteroffering is 385k with 10k seller concessions, which only takes 15k away from the sellers NET for a roof that could be 20-30k.
My question is, is it even worth all this hassle? If the appraised ARV is 385k, then the max we can get with 203k is 110% of that which is 38.5k would that even be enough for the extent of the repairs and is it worth getting a $423,500 loan for a house that had an appraised ARV of 385k?
After repairs this property has plenty of potential but I'm not sure if its worth the upfront cost, given I was planning on renovating the 2 units out of pocket as well.
This is my first ever deal and I have learned a lot even though I am stressed I am also grateful to be in a position where I can learn in real life. If you are new like me PLEASE choose wisely when it comes to your realtor I'm currently learning from that mistake.
Most Popular Reply
After reading the above comment and your explanation, in a word: NEXT.
Why try to catch a falling knife--if you can't get real equity when all is said and done, just pass and go on to the next deal.
Good luck.