Greetings bigger pockets
I am working on purchasing my first duplex in Eugene/Springfield OR.
A general inspector recommended that we have a cast iron drain pipe to the sewer scoped buy a specialist. The specialist came back and said that it looked fine now, but when I asked him for more details, he explained that he thought it could last perhaps between three and 10 years. The unit is from the 1960s.
My realtor owns several investment properties from the 1920s through the 1940s, and he thinks that the idea that the seller would allow a credit for this kind of a job is next to impossible, and he says that he would cringe asking. It is not orangeburg.
It seems like this job will cost in the thousands of dollars to fix when it does become a problem, and I know that costs of rehab can be considered when deciding on an offer, and I wanted to check if you think that this would qualify, or if, in this situation, it would be normal for me to pay the agreed on price, given that this was not considered, and budget to fix it myself down the line.
@Justin Harford I would have to agree with your realtor on this. If the specialist came back and told you it needed immediate attention, or even if they said it would need to be addressed within a year then it would be something you could ask for seller concessions. But something that is expected to last you 3-10 years from now I would say you need to find out replacement cost, divide it by 36 months to be safe and add that number to your calculated CapEx and see if the numbers still work. if you have the inspection contingency in your offer you could walk away form the deal if your numbers do not work.
Hey Michael thanks for the reply. Im glad i could clarify with a second opinion. Cheers
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing