Can you associate a cost with this undisclosed issue?

Maybe into an area with more appreciation or cash flow potential. 

Chris was partially correct ... the Roofer (Company I hope) should cover costs related to the roof, damage inside, and on/to that property.

Get it off your to-do list today before our discount ends.Ensure compliance today to avoid the potential $500 per day penalty for late filing".https://www.fincen.gov/boi/small-business-resources

Being upfront with clients and highlighting your strengths—like your market knowledge and dedication—can help minimize the impact of transportation issues.If you're concerned about the costs, maybe focus on building a client base close to home, where transportation won't be as big of an issue.

What made me interested in this deal was the combination of the property's potential and the neighborhood's growth.

My main concern is regarding cost-basis and future capital gains tax when I ultimately sale the property. 

When buying a house or refinancing, you will have closing costs. 

You can then charge the tenant 50% of the cost. 

I'd like to agree with him on a price and pay for the rehab and all of the costs and then sell it for him where he would take the agreed upon price and I would take the profit.