1st property had preexisting water damage

[John Cantey]

So, I bought 11 properties in the last year, but the 1st is a lemon. It has preexisting water damage that wasn't discloseded. I've redone both kitchens(it's a duplex) water damage from a leaky water heater, along with severeral other repairs, spent about $13,000 so far. The shower on one side leaks, previous owner put a sticker on it. It needs to be replaced along with the studs behind it. They also called last week about mold in the bathroom. That wall will need to be replaced. about another $10,000. Both tenants have made statements that they have asked for those things to be fixed, but the previous owner did nothing. I've used a buyers agent on all these deals I've made and in each, we have had due diligence and had an inspection done. We did not on this one. We also paid cash, things were moving fast a year ago. He say we can take the previous owner to small claims court, max settlement $7000, He refuses to pay anything now. I have had to push my agent to do this small claims court route. He has little interest. I told him of this new work, he says sell it. Not to lose trust in him, but that's the only way you make money out of this. Does he share in some of the liability, since we didn't get an inspection done?

Thanks