Active Termites...Renegotiate or walk away?
Hi BP Community,
I just got an accepted offer on a Duplex in a class C neighborhood. After accounting for vacancy, maintenance, capex, and property management I'm looking to cashflow around $415 per month with an 18% ROI. On the surface it looked to be in very good condition, roof, tile and wood flooring. Kitchen and bathrooms could use a little sprucing up, as well as some cosmetic work throughout. Not a very extensive rehab is required; however, upon inspections an active termite infestation was discovered. Because this would be my first true investment property I'm wondering if I should use this as leverage to renegotiate a better purchase price point to cover the anticipated cost to exterminate and repair any damage or should I walk away? I would love to hear thoughts on this scenario? Have you dealt with a similar situation? What did you chose? Thanks in advance for your comments.
