Pls help this newbie with rehab computation & negotiation
Hi BP family. We were under contract for a property near Corpus Christi (1 SFH and a 3plex); 3736 sqft. There was termite infestation in both homes but the seller won't budge when we ask for repairs so we cancelled the contract. Now, the seller reached out to us offering to pay some of the repair costs.
Purchase price: $210K
Repair costs: $48K ($20K for siding, $4300 for leaking pipes, $9K for termite fumigation, $15K to replace flooring)
ARV: $275-$300K
Monthly Rent: $3550
Property Tax: $4774
Home insurance: $5628
Maintenance/Cap Ex: $5K
Property Management: $4100
Please let me know how you would handle the renegotiation. Do you think my numbers make sense? We are happy with just a cash flow of $150/unit. I will really appreciate any input and may God bless y'all for your kindness.
Jona Santiago (Austin, Texas)