First Rental purchases help (Termites, Mold, ....)

[Craig Clark]

Hello BP Community,  

My Wife and I are currently in a unique situation, where we have the opportunity to purchase two homes as our very first real estate purchase and we were hoping we could get the community's feed back on a couple of issues for our very first purchase(s)

Background. 

House A:  I have already secured financing for this home and some repairs will be needed (less than $5k).

House B (The reason for the post):  This home would be a cash purchase for less than $15K.  The home is located in an area 30-45 min outside of a major city  in a suburb that is not expected to appreciate in value, and has comparable homes on the same street currently valued between $42-60K for the same sq ft and bedroom count. 

I had "house B" inspected and here are list of problems:

1. New roof will be needed soon (last years of its life)

2. Mold has been found in the basement 

3. Termite shelter tubes and exit holes found with damage in basement

4. Minor Plumbing/Electrical issues, the need for a french drain in yard, and minor cosmetic touch ups (paint, new doors, etc...)

Since we have zero experience and we are investing out of state, our fear is that the cost of  the repairs to "house B" would out weigh the AVR the property could achieve.  

I was hoping the community could offer feed back regarding the second purchase and the potential repair costs.   Any constructive feedback on rather not you think their could be enough potential equity to justify the repairs is welcomed.  All the repairs would be paid for using credit cards, and I would to refinance the property to clear that debt.

Any comments are welcomed and greatly appreciated.