First house hack w/ Structural Damage

[Whitney Bivins]

Hi,

I am currently under contact for my first house hack a duplex. During the inspection the inspector found structural damage to the property in the crawl space. I got a structural engineer to look at the house and he said I would need to take out the floors from the top down redoing all the floors and most of the crawlspace and that would likely cost about 20k. This is something I would have to do right away since it’s so bad. The perimeter of the house is fine but anything inside is not. 

I plan to live in the house for two years, renovating some. Then look for my next house hack. I do believe that with some TLC this house can appraise for 50k higher by the time I move out as well as cash flow. The seller is giving me a one year home warranty.

As someone who has never bought a house a 20k renovation right off the bat feels very scary. Between the 20k and the money I know I will put in to renovate the house it feels a bit overwhelming.

Should I take the house and if the seller is able to give me the money for the repair and deal with any hidden costs?

Should I back out the deal and wait for another even with being in a fairly competitive market?