Half of Duplex - Need Roof

Nashville, Tennessee
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Half of Duplex - Need Roof

Gerald Pitts
Lender · Asheville NC · Member since 2016 · 469 posts · 317 votes

In addition to a 2nd rental I'm selling in Nashville soon, I'm selling my half of a duplex aka zero lot line property in order to buy my 3rd vacation rental in the smoky mountains. Seller is requesting a new roof after inspection revealing roof to be super old / shot. All of the roofers contacted are saying they can't really do half the roof of the structure. Total roof estimate is $6300. I spoke with the owner next door who is also intending to sell as it turns out. But she is not interested in replacing the roof and is selling as is. I relayed what my realtor was saying that the likelihood of either side selling without a new roof is highly unlikely. She wasn't interested. I told her to let me know if she has issues selling and changes her mind. 

HVAC is also shot, but they are only asking for a home warranty and not new hvac.  We asked buyer if we could just provide a roof allowance, but they are insisting on the replacement of roof since they aren't asking for hvac.

 In total, they are requesting roof, warranty and seller paid closing costs.
Roof for both sides = $6300
warranty = $550
Seller paid Closing costs = $3300

Net gain is the difference of roughly $25k replacing whole roof vs or $28k with skipping roof altogether and re-list risking a dip in price of 5k according to realtor. Also, the next guy could ask for a roof and an hvac.  If I had the capital, I'd try to buy the other side of the duplex, but I don't.

The painfully evident choice seems to be to eat $3k, replace the whole roof, and move onto buying the next Gatlinburg vacation rental cabin which will make back the $3k in no time.
I just wanted to put this out there to see if anyone sees an additional option I'm not thinking of?

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David Wandel
Real estate investor · Pasadena, MD · Member since 2016 · 165 posts · 258 votes
6y

Find another roofer. There is no reason that your half of the duplex can't be done without doing the other half being done also.

There are townhouses and duplexes all over the country that get their roofs done without doing the adjoining roof.

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  • Avery CarlBusiness Member
    Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
    6y

    @Gerald Pitts what about a 3k escrow agreement? Is their concern that they will close and then be unable to get the neighbor to agree to help replace the roof?

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    1Reply
  • David Wandel
    Real estate investor · Pasadena, MD · Member since 2016 · 165 posts · 258 votes
    6y

    Find another roofer. There is no reason that your half of the duplex can't be done without doing the other half being done also.

    There are townhouses and duplexes all over the country that get their roofs done without doing the adjoining roof.

    3Reply
  • Matt Devincenzo
    Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    6y

    First you cam absolutely do a half roof. The issue is the warranty, it is more likely to leak at the seam between the roofs if you only do half....more likely, not will. So find a roofer willing to do a half and be compensated for the extra risk.

    Second are there any private maintenance or CC&R type agreements? Sometimes those will spell out how one party can perform work and be compensated by the other. It's worth taking a look for that because even if each half covers their own improvements, it's always prudent to identify how you address the 0 lot condition so that should have been done when these were constructed.

    2Reply
  • Gerald Pitts
    OP
    Lender · Asheville NC · Member since 2016 · 469 posts · 317 votes
    6y
    Thanks, Avery. Yeah that’s the concern, unfortunately. 

    Originally posted by @Avery Carl:

    @Gerald Pitts what about a 3k escrow agreement? Is their concern that they will close and then be unable to get the neighbor to agree to help replace the roof?

    0Reply
  • Gerald Pitts
    OP
    Lender · Asheville NC · Member since 2016 · 469 posts · 317 votes
    6y
    good point, and may be worth looking into. There’s no hoa though. This is one time where I wish we had one. 

    Originally posted by @Matt Devincenzo:

    First you cam absolutely do a half roof. The issue is the warranty, it is more likely to leak at the seam between the roofs if you only do half....more likely, not will. So find a roofer willing to do a half and be compensated for the extra risk.

    Second are there any private maintenance or CC&R type agreements? Sometimes those will spell out how one party can perform work and be compensated by the other. It's worth taking a look for that because even if each half covers their own improvements, it's always prudent to identify how you address the 0 lot condition so that should have been done when these were constructed.

    0Reply
  • Matt Devincenzo
    Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    6y
    Originally posted by @Gerald Pitts:
    good point, and may be worth looking into. There’s no hoa though. This is one time where I wish we had one. 

    There doesn't need to be an HOA for there to be CC&Rs or a private cost sharing/maintenance agreement. I recently supported a client on recording new CC&Rs that cover a strip of land with a driveway on the rear of three new construction homes that are each on their own lot without an HOA. The agreement covers what you can and can't do on the driveway, and that each person pays for the cost of the portion on their own property...if lot 1 doesn't do it the other two lots can provide notice and then perform repairs. That's what you want to find in your title report somewhere.

    0Reply
  • Joseph High
    Specialist · Nashville, TN · Member since 2019 · 75 posts · 50 votes
    6y

    @Gerald Pitts

    I recently was looking at zero-lot line and I believe the seller coordinated with the owner on the other side to repair the entire roof, but you should be able to do only 1 side. I know that time is of the essence, but I do have several contacts that might be able to give you another estimate on the roof. Both of them have given me quotes on my personal residence. 

    0Reply
  • Boots Bonner
    Investor · Nashville, TN · Member since 2016 · 42 posts · 68 votes
    5y

    I have this same issue in Nashville. Did you end up with a new roof on you half duplex? 

    0Reply
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