House hacking - home needing repairs, seller not willing to do all of them

[Jesus Bravo]

Hey all,

Im new to the forum but exited to join and gain/share value from experiences. 

Im currently under contract for my 2nd house hacking property. The inspections were completed and turns out that a good amount of the work done in the house by the seller to flip the property was done poorly. If the major defects (bad window installment, clogged piping, pool transformer) are fixed, I could deal with the rest of defects and fix them myslef (bad valves in bathroom, placement of air handler, undersized water heater). Point being, to me it still seems like a good deal to close on this property as I could cashflow about 800-1000 bucks per months so if I was left to repair those things (assuming 12-15k in rework) ROI would be about a year or so. What are people's thoughts?

[Paul De Luca]

@Jesus Bravo

Did you tell the seller that? If you did and the seller said no, it's up you to decide if you still want to move forward or not.

I think it is unlikely that the seller would agree to that considering they already did a shoddy rehab and they won't want to redo the work, but it's at least worth asking.

[Chris Davidson]

@Jesus Bravo If the seller is the one who "flipped" the house and it was bad work would first bring it up and see if they know it's bad work, and they can get their contractor back out. However if they actually did the work I wouldn't want them working on it more thus would just go for a credit or price reduction. See if you can come to terms and if not move on. 

Best of luck!

[Eliott Elias]

This is where your investor cap needs to be put on. Be willing to walk away at any time, in this market it is powerful and you will call the sellers bluff. 

[Jesus Bravo]

Yes, we sent the seller the whole list of findings from home inspection but told them what the major hitters are and we are willing to negotiate on those. Seller has not gotten back to us but I assume (as you said) they won’t agree to all (but hopefully some) so that we can keep moving forward. 

[Jesus Bravo]

Quote from @Chris Davidson:

@Jesus Bravo If the seller is the one who "flipped" the house and it was bad work would first bring it up and see if they know it's bad work, and they can get their contractor back out. However if they actually did the work I wouldn't want them working on it more thus would just go for a credit or price reduction. See if you can come to terms and if not move on. 

Best of luck!

This is a very good point, I doubt they did the work themselves since it’s a single investor so I’d hope they can get their contractor out to fix the poor work. I’ll make sure to communicate this