First Rental Property Purchase

[Mende Cukalevski]

Hello,

This is my first post here. I am new to real estate investing and looking to purchase my first investment property located in Central New York looking to purchase a 4 bds 2 baths 1850 sqft. Asking price $149k however there is a “small” leak in the basement spoke with the owner and he states it will be fixed before he sells. My question is how serious of an expense is a water leak in the basement, the house overlooks the water as well so I feel like it would be a great investment opportunity. I am also looking for any other suggestions or advice for new investors.

Thank you.

[Ben Sears]

I can't comment on the list price since I'm not in your market, but I will comment on your leak...

Have you looked at the property, and specifically the leak, personally? I wouldn't take the sellers word for the severity of a problem with the house. You also said it was a leak in the basement. Are we talking about a leaking pipe/fixture or a foundation leak? There is a significant difference in the two as far as cost and scope of repair. I think you have two options...the first being that you let him repair it, provide receipts, and include contract language that it's repaired to your satisfaction. The second option is that you get a few estimates for the repairs and he knocks the cost off of the list price (my personal preference). I feel like I have more skin in the game to make the repair correctly than the seller does while he offloads the property. 

How do your numbers look on the property otherwise? Post the up and we can probably give you a better idea of how good a deal it might be.