Updated 4 days ago on . Most recent reply
Questioning Current Deal Setup
Hi there,
I'm pretty young and about to buy my first home with my wife. Due to FHA non-occupant co-signing financing restrictions, we are limited to a SFR for now. We are actually under contract on one now that we like. Except there are issues with the foundation. I'm hoping to get some feedback on if this deal is worth pursuing further or if we should look elsewhere. Here's some info:
Price: $375k
Current concessions: $15k
Seller effective net: $360k
However, we got a report from a structural engineer that advised doing some foundation repairs. The quotes are a little bit up in the air, but it could be $20-35k realistically to fix everything. The sellers offered $12k in additional concession ($27k total) to compensate toward it, which is the max they can do, even though the quotes we got to fix it are more than that.
Our biggest limited factor right now is cash on the front end. We barely have enough for down payment, closing costs, and other planned renovations (adding a bedroom and half bath) as is. So we don’t really have a lot of extra cash available for additional foundation repairs.
Our goals would be to buy something ASAP, rent part of it out to sort of house hack, but then to refinance in the next few years once we hit 20% equity. Any and all thoughts and advice would be appreciated. Thanks!