Please DM me if you have any additional questions. 

It may or may not show on a credit report, depends on the servicing and you should have the loan serviced.Failure to include the debt on a future loan application is mortgage fraud, wanna go to jail?

If you have any additional advice please let me know!

Local banks and smaller credit unions are most aggressive in this space.

You are right, when the inspector mentioned the possibility or prior water damage is when you should of had that basement inspected by a contractor/professional and not listen to your agent.Gregg is right, the sellers were aware of some of the damage which is why they gave you a 5K credit. 

One suggestion to consider as I mainly do BRRRRs as well- find a local bank or credit union in the area you plan to buy that offers construction loans.

They offered to give me a credit on a future loan.

I created a co-hosting profile as I was looking for additional opportunities.

Hi Scott, you don't need to be a first time homebuyer to use an FHA loan and you don't need to be low credit (as many would suppose), but the product probably appeals most to low-credit first time buyers.

But overall it looks like a great looking place and a nice addition to your rental portfolio.Good Luck!