Help with buy/hold on 1900 house

[Bryce Till]

BP,

I have a potential deal on a SFH 3B 1B house built in 1900.

Listed Price $114K

The house has recently been rehabbed by a flipper but after a strong rain storm yesterday the house has a leak with water dripping into the bathroom and hallway. Two walls, carpet need to be replaced from the flood in addition to fixing the leaky roof.

I am interested in the house to buy/hold and rent it out. Before the rain storm the deal would have met the 1% rule which in my area is very hard to find.

Details about the house:

Exterior: Outside looks okay, roof looks new and the place has all new windows. I did not notice any cracking of foundation. However, I know very little about that.

Interior. The 3 bedrooms have new carpet and new doors. The bathroom is also completely redone. Whats interesting about the bathroom is every square inch of the bath room is tile, even the walls. Is this strange?

The Kitchen also has tile and new cheap cabinets and counter tops.

This would be my second real estate purchase and my first investment deal.

So,

• Do experienced buy/holders avoid old houses like this?
• What can I do to try and prevent buying the place and later finding a 20k issue with the house?
• Considering this is my first buy/hold should I move on and find a house house built more recently?
• Do you try to leverage the known leak to my advantage considering the flipper needs to move this property quickly?

Thanks,

Bryce