SFH with Bowing Basement Walls

[Emma Chen]

Hi BP,

I’m looking at a deal in Indianapolis IN. I found one house on the border between Pike and Washington townships (supposed to be a nice area, please educate me if I’m wrong). My major concern with the property is that there is bowing in the basement walls.

The owner prior to the current owner reinforced the walls with steel beams. The current owner made modifications to divert water away from the house. They added a moisture barrier, replaced downspouts and extensions, and regraded the land within 6 feet of the house to divert water away from the foundation.

Numbers:

$60k asking price.

Revenue: $825/mo rent.

Expenses: $95/mo taxes, $50/mo insurance, $65/mo prop mgmt. + $40/mo re-leasing fee, $100/mo rep&maint.

We can buy either in cash or 20% down. We would probably get a loan ~5% which would give $250 in PITI.

House was built in 1956.

Given this info, would you guys consider this deal?