First Property Help - Water in Basement

[Brandon Jurczyszyn]

Hello BP!

I am in the process of buying my first property in the Metro Detroit area. I made an offer on a 3 bed/1 bath Bungelow that looked great on the listing and during the open house.  Upon receiving the sellers disclosure, I learned that the basement flooded (3 in of water) thanks to city pipes backing up from root blockage about a year ago. The pipes have since been cleared by the city, the basement fully redone, complete with new drywall, furnace, hot water tank, and epoxy flooring. I made an offer and it was accepted, so we moved to inspection. Upon inspection, a handful of repairs were identified that I did not expect in my budgeting, and therefore I removed my offer. No major red flags outside of the basement, I am just working on a slim renovation budget, so the little things piled up.

Today, I received a text from my agent that the sellers are willing to negotiate lowering the price/handling the work that is needed in order to keep the deal alive. My question for BP is: how do you feel about the level of risk with a house that had water in the basement due to city pipe blockage? Pipes are clear. But the chance of flooding will be there still. This house has amazing potential and rent-ability in the location it is in, and the other repairs needed are do-able.

I'd love any advice you may have as I am a first time buyer, looking to rent this property out within a year of (potentially) closing.

Thanks!

Brandon