Buy or Walk?

[Chris M.]

I'm looking for a rental investment, and found a 3 bedroom 1000 sf house for $30,000 in Indiana, currently rented at $600/month.   Seller isn't willing to go any lower.  I thought it was a good deal, but ordered an inspection and came up with a number of issues including the following:

-cracks in the foundation cinder blocks although told that's easy to replace 

- roof has 3 layers.  I'm told this will need to be replaced to be insured.

- all windows need to be replaced.

-crawl space is rotting.  Told the house could collapse if the supports aren't replaced.  Also told this is a signal that it has humidity issues that could cause mold or other problems in the house.

-electrical/circuit breakers unsafe/need some rewiring

-furnace is very old, but the inspector couldn't check it because the tenant couldn't afford the gas.  Also because of this some of the pipes have been freezing in the laundry room in the winter.

-inspector couldn't access the attic but says there could be other potential issues there

-the kitchen/bathrooms probably also need updating

The inspector said he estimated it costing at least 8-10k to fix these issues, but maybe a lot more.  So does it still sound like a good deal, and how much would these issues typically cost?

[Mike D'Arrigo]

@Chris M. I wouldn't walk. I'd run. I know Indianapolis well and the first problem is anything renting for less than $750 is a problem. You're going to have a lot of tenant problems. If you want to shoot me the address I'll take a look at it and give you my thoughts but I'd be surprised if anything would change my initial feelings. Secondly, as others have said, there is no way all of that is an $8-$10K rehab. This is a major rehab that $600 rent won't support.