Potential First Investment Property But...

[KJ Tottle]

The seller and I have negotiated terms for a duplex, but just as we are about to enter into a contract he asks for $1K earnest money.  The property is being sold as is, but hasn't had a termite inspection or protection for approximately 7 years.  This is what worries me, but maybe I'm being too risk averse.  

The projected ROI is 9% immediately, and rents haven't been increased in at least 4 years. Both units have residents that have been in the property for multiple years and plan to stay.

This is potentially my first real estate investment property.  I am looking for advice and/or possible courses of action.  Thanks in advance.

KJ Tottle