All Forum Posts by: Chris Ehrhart

Thank you Terrance! 

Hello, can anyone please point me in the right direction to determine what the highest demand for rental configurations is in a particular city? I’m looking in a small town west of Fort Worth and wondering if a 3 bed 2 bath, a 2/2, or a 1/1 is in highest demand. I’m considering building to rent. Thanks! 

@Matthew Paul Sound advice, thank you. The seller had it listed for $25K above market. My first offer was $35K below their asking price, but they countered to bring my offer up $10K, so now we are at market value. I’d be happy moving forward if they are willing to take that $10K off, and be back at my original offer price. I’m just waiting on a quote from an electrician and HVAC technician so that I can give them some justification for my numbers, if need be. I’m still in the option period, so if the numbers still don’t work, I’ll move on.

@Matthew Paul,

I’m not trying any “crap”, simply seeking negotiation advice in an effort to pay a fair price for a house that needs a lot of work.

The inspector found that both electrical panels are a safety hazard, not grounded properly, and the service mast is detached and dangerous. The roof needed to be replaced years ago. 

I’m glad you sold your house. I’ve also sold a house above market value, but markets change. Prices are beginning to stagnate, houses are sitting on the market longer, and sellers are having to drop prices.

Also, the contract that I signed failed to specify that the 1980’s house that I want isn’t a brand new house, so I’m glad that you pointed that out.

Thanks for the reply! 

I don’t think the list price factored in these items, it was listed above market value and in worse condition than comps. I was aware of the needed updates, but not aware of the age of the roof, HVAC, and substandard electrical until I got the inspection results. 

We are at market value on the contract, but with theses issues, I don’t think that it’s justifiable to pay market price. It was on the market for over 100 days before I made my offer. 

Thanks again,

Chris

Hello,

I’m trying my first house hack on a duplex. I’m under contract at market price. However, both units have electrical panels that won’t meet code and need to be replaced. Both have 13 year old HVACS. The roof needs replacing, and both require floor and appliance updating to get market rent. 

My question is, does anyone have a negotiation equation or strategy to get the price down, considering these costly repairs. I don’t want to offend or halt negotiations by asking for 100% of repair costs (obviously) and I know there are a lot of variables….just looking for a general starting point. 

For example, since we are at market value, should I ask for the seller to come down 50% of what the necessary repairs will cost; electrical, HVAC, roof?

Thank you for your time and advice,
Chris