I wasn't sure where to go about this but I know that I needed to consult with folks who've been investing and know the game. I'm currently under contract to purchase a home built in 1920 for $160,000. The house is very cute, has a 1 year old roof, most things in the house are updated. It's a 3 bed 2 full bath near Speedway in Indiana. We found out during the general inspection that the foundation was rated poor because of minor bowing in the foundation and some cracks between the mortar, and there is water coming from the ground (no sump pump is installed). The general inspector said that normally foundation can look worse than it actually is, and recommended a secondary inspection from an expert. We got one from Crossroads Foundation Repair, expert said that biggest issue is the water, because that's what cause it to bow and crack in the first place. Quoted us for $10,953 for water mitigation, sump pump, and carbon fiber straps. Guy from Crossroads did say that the foundation wouldn't cause him to run from the deal. He did comment that for a 1920 home, the foundation is actually in good shape.

The house also failed the radon test at 5.4. Realtor told us that would cost $1,500-2,000 to install radon mitigation system. Plumber couldn't complete sewer scope because there's no clean out and getting permission from seller for anything has been a pain in the *** (at least that's what our realtor says). He said adding a clean out for sewer access could cost $3400 at minimum.

So we're looking at around $16,000+ in possible repairs and adding a clean out. Sewer scope was also not completed. We told seller we would buy for $144,000. Seller said the lowest they would go is $154,000. Seller's agent claims that seller is an engineer and didn't have the same findings as the inspectors. I find that bogus because we already had two opinions from an inspector and from a foundation repair company.

We like the house, we like the location. We're going to live in it for a couple of years and then make it a rental property (we already own a duplex and are about to rent both sides). Is this a worthy investment or should we walk? I'm going to negotiate more money off, but I'm thinking at what point does it just not work anymore? ALSO, we are the SEVENTH customer to be under contract for this house. Everyone before us walked and they have only disclosed from the last buyer that it was because of financing.

Would love to hear your thoughts or any advice from people who have been in this situation, or have seen this happen. Help is so greatly appreciated!!

Indianapolis, Indiana

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