Mold in basement and Roofing

[Tony Zhang]

Hi Dear Investor, I need your advise! I'm interested in a property in St. Louis area (63138) that has been on the market for more than 80 days; originally it's listed for $155k, after that it was constantly drop the price every other week, to $150k, then to $145k. Last week, when it drop to $135k I made a offer of $125k. Seller accepted my offer, and today I got the inspection report back and it let me worry if it's worth my investment. This property is a duplex with tenant occupied in unit A, and unit B has been rehabbed. But, the issues with this property is their Roofing is bit old more than 20 years with a lot of patched all around the roof, and both unit's basement floor is covered in water with 1/2 to 1 inch deep (unknown reason). Also, there's molds in the basement overhead and on the wall. There's other issues from what I see from Ledger the Tenant in Unit A always not paid rent on time and with more than $2,000 balanced past due, also doesn't has security deposit holding. I'm an first time out of state investor, and this duplex seems like a good cash flow. Its total rent was $1800/month in 2020 with purchase price of $125k. Should I need to worry about the potential issues of mold, roof age and tenant issues? What do you think my options will be for this property? Should I move forward with it or sign mutual release?

Thanks,

Tony