House hack with bad roof
Hi everyone, just looking for some advice. I'm currently in the process of buying my first multi family home for a house hack. This property in particular was listed at $235,000. I negotiated down to $215,000 due to several factors. The place is newly renovated on the interior and doesn't have a ton of room for rent increases. As it lied my numbers worked out to be with market rents about 200-400 cashflow with both units rented once I moved out. I just got my inspection done and they said it may not be insurable with the current roof. I feel like i got the seller down to their low price, if they do not accept seller credits would it be best i walk away from this deal? My plan was to stay for a year or two and scale but a $10,000 roof would most certainly set that timeline way back and stop me from renovating as much as i wanted to. Thanks for you time!
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- Accountant
- Chicago, IL
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I'd check with an insurance agent first. $10k for a new roof in the grand scheme of things would not be much. If anything, I'd raise the price and then have seller credits to offset. If it cash Flows upon move out, that's a huge win. If everything else checks out, I'd continue to make this deal work
- Aaron Zimmerman
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