Fire Damage Discovered During Inspection

[Tim W.]

Hi all,

First time investor and am under contract on a 4plex. During inspection, it was learned that there was  a fire at some point in basement. Floor boards were severely charred and inspector worries there could be damage to framing in parts of the house we can’t see (in fact, that side of the house seems to be sagging anyways, which is worrisome). 

This is an early 1900’s property, so was expecting issues (which there were many before the foundation issues). But the property has not been well maintained over the past decade or two, and foundation issues scare the crap out of me. 

My gut says I need to cut off of this deal,  but curious to get your perspective. I got a good deal on the property, but the list of fixes has gotten longggg and expensive. 

I appreciate any perspective anyone with similar experience can share.