Rookie- Need advice on investment with foundation problem

[Ella Lan]

Hi BP community, 

Rookie here looking to close on my first out of state deal. The numbers look great and it's in a solid neighborhood in Columbus Ohio area. However, there are foundation problems with the duplex. Hoping to get some advice from the community here.

Property numbers: $500/month cash flow, 10% COC. Duplex is around 100 years old

Problems:

1. -Substantial foundation bowing was observed, more than 1 inch in the basement, no cracks yet. Some rotting sills around front of house and framing members
2. -Concrete slab shows evidence of settling 
3. -Galvanized steel pipes in the house
4. -Moisture in the basement (seller stated this was fixed)
5. -Vermin activity (seller stated this was fixed)

My questions: 

• -Is it worth pursuing this deal? 
• -How much cash should I buffer for/ what discount should I ask for if I move forward?
• -Would love to get advice from anyone investing in the ohio area with experience dealing with old properties with foundation issues. Looking for cost, timeframe, recommendations. 
• - also have heard vermin activity don't typically go away, is this true? should I be concerned? 

Thank you in advance everyone for helping out. 

[Cassi Justiz]

It's almost impossible to ballpark foundation repairs without being able to see the property or the extent of the work needed. I've seen foundation repairs ranging from $500-30,000+. The best choice would be to have a structural engineer and/or foundation specialist come out and give you an estimate and scope of work. That way you'll have a great idea of what those repairs are going to look like and be able to make an informed decision. 

I wouldn't write it off yet. But you'll definitely want to have something in writing to figure out what kind of repairs you are looking at.