Structural repairs and BRRR strategy

[Ashley Russell]

We are under contract on a new deal 3/1 for $115k in south St Pete and just had our inspections today. We knew it was a fixer upper that needed major work but the inspectors found more termite damage than anticipated and even evidence of a previous fire. Structural repairs will have to be made in the attic and crawl space. We planned to put about 30-40k into it to open up walls, remodel the kitchen and bathroom and possibly even add a bath. If we have to spend $15-20k on structural repairs, there isn’t much left for the ‘value add’ items that will bring up the appraisal. Should we walk away or will an appraisal pickup structural repairs?

[Eric James]

If repairs are more than initially estimated, renegotiate the purchase price accordingly.