When to walk away from a property

[Christopher Short]

About a week ago i got my first property under contract. Price was a little higher than what i wanted to pay but i got it off of MLS and it had "multiple offers" so i had to come in at highest bottom line price. I thought this was still a good deal. House looked like it needed minimal work in the photos. It has original hardwood floors, nice open floor plan. Looked like the most i would have to do is turn the garage into a bedroom, update appliances and a little paint, 15k at most in renovations. Well of course that didn't go as planned. We get the house under contract and visit.... everything looks good on the outside. When we get into the inside I see hairline cracks in the ceiling and on a few walls, big red flag. On top of that, the center of the ceiling has a big hole that has been badly covered up, which makes the ceiling come together at a curved angle on one side and a straight angle on the other. I was sure that I would run into some things but I am kinda nervous for this estimate from the contractors. On top of having that foundation issue, i just don't know if its worth the hassle. I'm using a hard money lender for the flip and its already looking like i'll need more cash to close than I intended on spending. When should I pull the plug in a fix and flip property and what are some of your personal red flags in properties as investors?