Should I move forward with this deal?

[Julia Maddox]

Just had our inspection for a small lakeside cottage ($117k accepted offer). There were lots of rotten floors (had been hidden under furniture and rugs for staging, ugh) and there was also a broken piping that happened since we made the offer. Waiting on the full inspectors report but obviously we'll be coming back with a much lower offer if we move forward at all. 

This is my first deal and I was not looking for a major rehab project. I had hoped to start renting (as an STR) this summer, but that's not in the cards given the extent of renovations needed.

I guess I'm looking for a pep talk! I know that there is a sales price that would make this deal worth it. I would be hiring a contractor to do all of the renovations. And I guess this would be a BRRR opportunity.

What would you do? Help! 

[Curtis Mears]

@Julia Maddox

On the properties I purchase, I often use the inspection to negotiate a lower price. I do not ask for a reduction for the issues I knew about, but if things come up that I could not have known, I ask for reductions based on this. Things like flooring that was intentionally hidden, get a reduction, but siding you knew would need replaced, no deduction. If they are unwilling, be prepared to walk away.