First investment property - issue during inspection

[Mayank S.]

As a part of due diligence on my first investment property under contract in Indianapolis,  inspection report recently came out and it didn't come good as expected and probably typical for 100 year old home.

Major issues: Termite issue (live) , foundation issue, electric system not updated (no GFCI outlets anywhere like kitchen bathroom garage outside), brick chimney pulling away and deteriorated brick at bottom . Others are not so big but still there. Listing some of them from inspection report-  

-There are gaps in the fascia and soffit covers, the fascia covers have pulled loose on the right side, areas have been filled with expanding foam, and the roof sheathing is visible in areas.

- There were no vent provisions visible on the outside of the house in attic. The upstairs will likely be cold in the winter and hot in the summer.

-There are water stains on the ceiling above the tub.

-The foundation has deteriorated at the front right corner of the house, the parging has come loose along the right side of the house, the foundation walls are bowed in on both sides of the house, and the mortar has deteriorated between the blocks and bricks of the foundation in several areas.

-There is termite damage to the front and rear beams of the basement and live termites in the rear beam.

-There was water seepage on the foundation walls and signs of water standing in the basement

what would someone suggest me - do you think lot of work is expected if seller does't budge on his price and not ready to fix them? Shall I just backout from the contract and look for another one. It is not a solid deal just 10-12k under listing price accepted . Looking for buy and hold and not flip. First one in the portfolio so not sure if ready to take risk at this point...   

[Joel Owens]

WALK AWAY........... Inspectors usually never catch everything so plan on more stuff being wrong than you found.

Unless the seller will reduce a ton it doesn't make sense. If the seller will reduce cost of materials your time and energy watching over contractors to fix or doing yourself is worth a lot.

Are there not any other properties to look at?? That sounds like a lot even for a 100 year old house. Sometimes sellers are dirty and the cover plate off electrical shows updated wiring but inside the wall it is spliced into knob and tube.