203k vs. seller's credit pros and cons
Hello everyone I'm a new investor and would like to hear your opinion on this deal. I'm currently in escrow for a property for 420k.
After inspections, a lot of issues came up that need fixing: electrical, termites, plumbing, some foundation work.
Repairs will probably run around 80- 100k.
I'm currently approved for FHA at 3.5% down.
My question for you guys is.
1. Do you think it's better to ask for a reduction in price from the seller and use a 203k FHA loan to finance the repairs on the house
or
2. Ask for seller's credit
or
3. Maybe you know of a more creative financing Idea that would make more sense.
I'm interested in the pros and cons of each. i.e.: how it affects property taxes, insurance, speed of getting the loan, etc.
I'd love to hear your opinions on this topic.