Water damage in the kitchen

[Trevor Murphy]

I am looking at a cash only deal to fix & flip.

The house is listed for $325,000 (4 bed 2 bath 1500 sq ft)  The neighborhood I believe could support a case for $550-600 all fixed up.

The house right next to it sold for $490 (3 bed 2 bath 1300 sq ft) 

In a document I received from the realtor it discloses there was water damage to the kitchen area. 
What is the worst case scenario for the water damage and the repair/costs to fix the damage?