All Forum Posts by: Esei Igbinedion
Esei Igbinedion has started 1 posts and replied 4 times.
Post: Take the deal or get out?
- Posts 4
- Votes 1
Quote from @Don Konipol:
Quote from @Esei Igbinedion:
I found an out of state investment property (I live in DC) in Powder Springs, GA. While I lived 20 years in GA, I’m not as familiar with the powder springs area but between my realtor and some research on my own, the numbers show this property has a small positive cash flow, even with hiring a property manager. Negotiated to $180k from $195k. Got the inspections in and am admittedly shocked by all the issues. A lot of them (65) labeled as marginal issues and 2 labeled as significant issue, one is the roof. The roof was supposed replaced last year but inspection came with gaps, no active leaks and potential past moisture damage (water marks in the attic). I hired a separate roofer to do a separate inspection and he believes it has about 3 to 5 years of life. This differs from the handyman my realtor know, who quoted 7-10 years. Not sure who to believe at this point. The roofer quoted $800 to patch it up now and make minor updates to keep the life of the roof but $7k to replace the whole thing 3 years down the line if I choose. Would you take this deal?
Sounds like someone confused “repaired” last year with “replaced” last year. If “replaced” was stated in the listing or appeared in any “advertising” you have a strong basis for bringing it to the attention of the seller and demanding a price adjustment. If it was something your Realtor stated offhand that they heard from the sellers realtor, then it’s just a “miscommunication”.
Hi @Don Konipol the seller presented the roof info in a disclosure. Nothing official, just a typed up document stating the roof and a few other items were recently replaced.
Post: Take the deal or get out?
- Posts 4
- Votes 1
Quote from @Michael Smythe:
Who told you the roof was replaced last year?
If it was the seller, what else are they misrepresenting?
Post: Take the deal or get out?
- Posts 4
- Votes 1
Quote from @Danny Fuentes:
Hello Esei, what is your goal? Do you have the capital to invest in a property that will need some repairs upfront and only return a little cash flow for now? Is it in a market with strong upside potential after you fix it up?
A few other things to consider:
- Roof/CapEx: Even if you patch it now, you'll need to budget for a full replacement in 3–5 years. Does that fit into your reserves?
- Inspection Report: With 65 marginal issues, have you factored in the cost to address at least the most urgent ones beyond the roof?
- Cash Flow vs. Risk: If cash flow is already tight, any unexpected repairs could quickly turn this into a negative cash flow property.
- Exit Strategy: If you had to sell in 2–3 years, would the area’s appreciation cover your costs and give you a cushion?
If the deal only works under perfect conditions, it may not be the right one. But if the upside (market growth, equity build, future rents) outweighs the short-term headaches, it could still be a strategic play.
Post: Take the deal or get out?
- Posts 4
- Votes 1
I found an out of state investment property (I live in DC) in Powder Springs, GA. While I lived 20 years in GA, I’m not as familiar with the powder springs area but between my realtor and some research on my own, the numbers show this property has a small positive cash flow, even with hiring a property manager. Negotiated to $180k from $195k. Got the inspections in and am admittedly shocked by all the issues. A lot of them (65) labeled as marginal issues and 2 labeled as significant issue, one is the roof. The roof was supposed replaced last year but inspection came with gaps, no active leaks and potential past moisture damage (water marks in the attic). I hired a separate roofer to do a separate inspection and he believes it has about 3 to 5 years of life. This differs from the handyman my realtor know, who quoted 7-10 years. Not sure who to believe at this point. The roofer quoted $800 to patch it up now and make minor updates to keep the life of the roof but $7k to replace the whole thing 3 years down the line if I choose. Would you take this deal?