Duplex with sloped floors

[Kyle Soderman]

Hi BP!

I need some unbiased advice here.

I am looking at a duplex currently in NE Minneapolis, MN. It is an older home built in 1900. Here is the numbers break down. (I have the offer accepted but I have not yet submitted any earnest money.)

Purchase price: $207,500

Rehab cost: $35,000 (wrapped into financing with 203k loan) The rehab cost was bid from a contractor. Rehab would include: new flooring throughout, new kitchen(cabinets/appliances), paint entire interior, New bathroom, other misc.

ARV: would be conservatively $300,000

I would live in 1 unit and rent out the other. The numbers all seem to work out to me living for free and making a little on top of that.

However, the one thing worrying me is the kitchen on the main floor is sloped pretty severely. My agent, who has done many rehabs himself, said this happens sometimes to older homes but it shouldn't be something to worry too much about since it should be all settled in. The bid was to put new flooring in and leave the leveling issue as is. There is no basement other than a 10x10 ft room with the water heaters in it.

Is this sloped floor something I should be more worried about? Could this be a potential money pit that could blow up the budget? Any advice will be greatly appreciated. 

[Peter Tverdov]

100 year old house with settlement is very common. Now if you put a ball down and it starts to roll fast somewhere, then that is serious settlement and probably needs a new beam or something jacked up. 

Nothing really scares me anymore tbh...anything can be fixed, just takes guts and money.