Scared I'm buying a bad deal

[Samantha Quinneisch]

Hello BP!

I have one successful rental and now am under contract to purchase a second one.  I am scared and think everyday about pulling out of this one!  Because the numbers aren't as good as my 1st one.  Here's the deal:

It's a 4 bed/2 bath 1800 sqft home in an mid-to-low neighborhood in Lakewood, WA House is almost 100 years old. However, 2 of the bedrooms are in the basement. There is a cottage in the back that I would live in and rent out the big house. Cottage is permitted. The rent from the big house would just cover PITI. Clearly by normal standards this wouldn't be a good deal, but the fact that my living expenses are covered for, this makes this an attractive offer. I want this house so I can pile up lots of cash for more investments (since I'm not paying rent or mortgage).

My Fears:  

The big house is too old and will need expensive repairs.

The 2 basement bedrooms -will this be a turn off for prospective families?  I am afraid this affects rentability and trying to sell it in the future

The basement bedrooms- I am scared of the risk of it flooding, radon, sewage backup, etc.  I hate living spaces in basements.

Thanks