First time home buyer in middle of 1031 exchange. No Agent. Help!

[J.D. Westphal]

Long time reader, first-time poster here..... Ok ok. So before you blast me for going forward with this deal without an agent, first hear me out. Currently renting in the house we are now trying to buy. Our landlord came to us asking if we would like to buy before he went to the trouble of listing the house. He recommended that we go without agents to make the process "easier". He is trying to complete a 1031 exchange and we will be doing a conventional loan. We have signed a purchase agreement for the home and are about to go forward with Inspections this coming week. We are excited and nervous because we don't want to screw this up. we have been wanting to get into the real estate game for a while now and feel that now is the time. Here is the kicker... It is an "as is" property. In the property disclosure statement, it says that the basement get's damp from time to time. Well as I write this there are multiple small streams flowing through our basement from the heavy rain this past week. Where do we go from here?? Do we go ahead with the inspection and try and write a repair request addendum to the contract? Can we back out before the inspection has been completed? We definitely don't want to lose our earnest money. Can someone help us with a game plan going forward? We feel like this will be a great rental if we can just have the basement issues fixed. Thank you for your time and for reading this lengthy post!