Appraiser found water in the basement and foundation cracks

[Wendell Torrey]

This House was to be our third rental property, our second deal of this summer. The appraiser visited earlier in the week and found water in the basement and cracks in the cement block wall foundation. My realtor is suggesting That because this issue was not disclosed that we should proceed with the purchase but require the seller to put the $13,000 that it will cost to repair the issue into escrow.

This home was built in the 50s, it’s in a great part of town it is a three bedroom one bath with lots of deferred maintenance. Our intention is to rehab it and rent it.

We offered $160,000 with 20% down, the house appraised for $165,000.

We own a similar size house in the area and rent it for $1800 a month and anticipate similar rentals on this one.

I think much of the foundation issue can be resolved bye replacing the gutters and maintaining them keeping the water away from the foundation.

I’m nervous about the deal and Wonder if anybody has any thoughts or feedback on it.