Sorry for the length. I've been silently following, listening to and reading Bigger Pockets material for 2+ years but don't believe I have posted anything. I've been looking for a duplex for quite some time. I was pre-approved for an FHA loan, then I found a realtor I trusted. She convinced me to re-apply for the FHA loan through her lender. I trusted her judgment, met him and went through with it. I had her bring me to many duplexes in multiple counties in Wisconsin. Eventually, the deal I found was through a friend and not my realtor. A short sale, not to be found easily since it was listed incorrectly as a single family on the MLS. I involved my realtor in this deal. This duplex seemed to be exactly what I was looking for, with 3 beds, 2 baths, a basement and 2 car garage in each unit. Each side rents for 1,150 per month. Taxes are 6,000 per year. This was based on a previous assessment of the property at $300,000. I plan to have the property reassessed and the taxes lowered. It was built in 1991 and looked on the surface to be in great shape. Being a first time home buyer, I was still a little unfamiliar with all of the steps in the closing process. I told my realtor to make an offer at 160,000. The reason for this number is another story in itself. But based on other comps all around this area, this was a low price to ask. The neighborhood and schools are great. We negotiated until we reached an accepted offer at $190,000. This doesn't quite meet the 2% rule, but the location is so great that I was ok with that. I plan to live there, then eventually rent out both sides. Once both sides are rented out, the property will cash flow roughly $500 per month after insurance, taxes and other expenses. After we had an accepted offer, I asked to have an inspector come through. My realtor told me that this is not allowed on short sales that are sold as is. I smelled bs and I did it anyway and we found mold in the basement ceiling rafters, caused by bad gutters allowing moisture into the basement. I told my realtor and she told me that it is definitely something to look into AFTER I close. I hired a mold inspector anyway. The mold inspector gave me a quote of $20,000 to repair. I'm afraid to attempt a renegotiation because if the appraiser finds out about the mold it will not be approved by FHA guidelines anyway. I don't want to walk away from the property but I may have to. I thought about re-applying for a conventional loan and renegotiating the deal. Or possibly attempting to repair the mold issue on my own after closing. The quote seems outrageously overpriced. Any recommendations?

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