Termites! Still buy??

[Mary Peacock]

Hello,

We are under contract for $85k (3bed 1bath 944 sqft) property. During inspection they found substantial termite damage and active termites. It has appraised for $10k over what we are looking to pay as-is and the appraiser said if we put $20K in it the value may be $140k-$150k. I think this deal still makes sense, but this is my first investment property so should I pass? I have calls into contractors to give me an idea of what it would cost to repair and the sellers have said they will not budge on the price... 

Thank you for any input!

Mary Peacock

[Charles Carillo]

@Mary Peacock

I would get a couple contractors out there to actually review and provide written estimates before moving forward. I would also review completed comps (closed in the last 30 days) and then subtract 5%-10% to find out what the value will be next year when you have completed the project. If it still makes sense; move forward. Make sure there is enough profit in the deal though.

[Joshua Austin]

Hard to say without knowing more Mary. I think it's definitely an opportunity for another price negation. I would definitely get a termite company in there to take a look as well as a qualified contractor. Let me know if you need some folks in Savannah and I can send you some contacts. Just PM me. Best of Luck!