Termites found during inspection

[Jan Whitney]

Hi everybody. I haven't had a chance to formally introduce myself yet (I've been lurking and studying and trying to learn all I can from the wealth of experience I've found on this site) but I've got a problem I'm hoping someone can help me with.

I have two duplex houses under contract from the same seller that I'm planning to hold - they are fully occupied and will generate good cash flow. Today was the termite inspection and both houses have some infestation - one has evidence of old and one has evidence of active. There is some damage to the floor joists on the one property with the old infestation and we can't tell on the other if there is any damage in the crawl space. We don't see any obvious evidence inside the houses.

The seller is going to take care of the treatments for both properties and repair the joist that can be seen. My question is, how do I know if there is more extensive damage - do I have a contractor come in - how does he inspect without damaging ? The home inspector was there today too but he didn't say anything about it and I don't have his report yet (is that something he should be looking at?)

This is my first investor deal and I'm a little freaked about already spending $1,500 plus for the inspections water, home, termite and surveys. The bank hasn't sent the appraiser yet - maybe I can stop them if I shouldn't be going further with the deal, if that is even what I should do.

I appreciate any advice you can give me.

Jan