All Forum Posts by: Andrew Smith

So say I waive all contingencies on my offer EXCEPT home inspection, but then I have an issue with something I waived, for example:

I waive the radon contingency, I do the radon inspection anyway and it comes out that there is radon to be mitigated. Can I use that as a bargaining chip on my inspection contingency by telling the seller: "Look, I will be ok with x that needs to be replaced based on the inspection but because of the radon mitigation I want $x amount off the property" or would that be illegal/breach of contract because I technically waived that particular contingency? Because my understanding is I have an out regardless, which is based on my satisfaction of the inspection results.

Ok, i guess i didn't include some info. I run all my properties through dealcheck.io and also rentometer to check market rates. Again, this $90k ask unit is already rented out for $1050 anyways. When I put in all the info I have on dealcheck, everything boils down to what the capex will be in actuality. @Joe Villeneuve, I don't know why you are saying I did no analysis. Besides, I'm not sure what other analysis I'm supposed to do other than dealcheck. I also am unsure about how rehabbing works when there is a tenant that already lives there.

My offer has contingencies for inspection and an acceptable lease that is already in place.

@Kenneth Garrett I have gone to many properties and I don't really know what to look for as far as things that need repair so this is the first one I actually decided to not see myself and just have the home inspector tell me whats wrong with it should my offer get accepeted.

Found a nice $80k property that apparently was rented out for $1100. 1% rule check. Did some calcs and seemed like a good idea. Bid $75k (why not I thought) then got outbid with cash offer. Kinda bummed.

Now, similar prop comes up but ask is $90k. I decide to offer $84k this time. It's actually rented right now for $1050/mo with a 1.5 year lease left. Idk why but I have super cold feet now. I have the listing agents buy contract ready to sign but I'm wondering if I bid too much. I don't know why the first was $80k and this one $90k when they are very similar props. Maybe this one is in slightly better condition but can't be too sure. It's a brick townhouse.

I feel like capex will make or break this deal, if monthly expenses stay about 50% its a nice 12% COC return but if things go south a bit, say 60% monthly expenses, COC will drop to 7% And it's a matter of $100 bucks a month in estimations. If capex stays at ~$100/mo I'll be at 50% expenses or so and if capex goes to $200/mo average I'll hit 60%...

This is my first rental property. What do you guys think?