Can I ask seller to pay my 1st year mortgage taxes & insurance?

4 Replies


Currently in the due diligence process of my first acquisition. As is, I will be inheriting a 1 yr lease that would result in negative cash-flow for the period. If, however, I'm able to have the seller pay for my 1st year's mortgage taxes and insurance, I should be in the clear. Is this a reasonable concession to ask for? Thereafter I plan on increasing rent, but I'm adamant about making this deal work with the current tenant for the first year.

Highly unlikely. You could ask for them to pay some closing costs, maybe enough to cover the difference in what you think the rent should be but that is still a hope.  Asking them to pay your Full mtg payment, taxes and insurance for a year is ridiculous.

@Wayne Brooks I see what you're saying... maybe they can cover something else in lieu of the insurance and taxes. Note, however, that I am NOT asking them to pay my mortgage, but only the taxes and insurance portion... which would make the month over month cashflow form the lease break-even.

Looks like the negative cash flow is a sign.  Do the math again (make sure to shop around for a bank with lower fees) and see if there is a solution to increases the value of it in a short time, so you can refinance it later after get a new appraisal after  rehabe....

No deal is batter than a bad deal which will stress you out and not worthy of the time and $.  

You can ask for any concession; however gaining agreement may prove difficult. @Sherry Gao gave good advice that the negative cash flow is a sign. Its ok to pass on a deal that is not right and wait for a better opportunity. Would you rather have a portfolio of high performers or one filled with underperforming assets? 

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