Take a look or stay away - Good deal but basement leaks water

[Victoria Lilly]

Hello BP members,

I'm a newbie looking for my first rental investment property. I came across a duplex today that seems like a good deal on numbers. But after receiving the property disclosure I'm a little worried. 

So here's the condition of the house: Over 100 years old (yeah I know...). 1bed/1bath in both units. Detached 2 car garage. New water heater new furnaces. Others unknown yet. But the house looks solid from outside, both from pictures and driving by (looks cute actually). Inside pictures look fine too. Showing is this weekend so I haven't seen the inside in person yet.  Neighborhood isn't too bad either. 

Asking 125k. Total rents 1400/month. Looks like a good deal so far right?

But here comes the frustrating part: Property disclosure says "basement leaks water when it rains hard for an extended period". I have very little experience in rehabbing. So if what they claimed is true (only leaks when it rains hard), does it necessarily mean that it has serious foundation problem? Is it possible that this is something that can be fixed fairly easy instead of a completely deal breaker? I understand that it's hard to tell without looking at it in person but any opinions will be appreciated!

Also disclosure says driveway and garage shows settling. Is detached garage foundation problem as serious as the house itself? And garage shows wood deterioration too. Does it mean the garage needs to be completely gut or even rebuilt? 

With all those said, should I stay away from this property as our first investment? Or is it worth it to negotiate the fixing into purchase price?