I'm evaluating a townhome that has very good cash flow and potential for appreciate but the inspector had concerns about the fact the plumbing is polybutelyne and there appears to have been some water damage on the first level - maybe because of flooding.  Sellers are pushing back on my requested repairs such as repairing soft flooring around the bathtub (likely caused, again by water/plumbing issues) and HVAC evaluation.  Worst case scenario is replacement of all piping at around $2500 but the seller's pushback is making me concerned.  Would you walk away? I am a new investor so not much experience with maintenance/plumbing issues. 

Hi Nichole, what i think you should do get the inspectors report. Have a contractor you can trust maybe referred from a relative, close friend, partner. Have him go in there see how bad it is or if he can see how much is would cost to fix things. That way you have a number to go back to the seller with and if they accept that then you know where you stand (always leave yourself some room $ wise). You can buy the townhome and fix it up and get your cash flow. If the seller doesn't like that number then if its not acceptable and doesn't fit your criteria then the deal isn't for you and maybe walk away and look for another one. Do all your due diligence to save the deal but if the seller isn't willing to work with you on the number that makes it work for you don't be afraid to walk away if necessary. There's other deals out there for you.

 Hope it was helpful for you

-James

Thank you very much James! Your reply is helpful and the sellers dug their heels in so I walked away. I can't help but think I dodged a bullet on this one - it just didn't feel right. Thanks again for your response!