SFH with sink hole (old investigative report) Pasco country FL

[Ellie T.]

Hi All,

I need some advice. I was about to close on a buy and hold property and I had a hunch that something was too good to be true. There was nothing to worry about disclosed on the MLS, nor were there any permits that showed any reason for concern. Still, the hunch was there so I asked my realtor to dig. He came up with an investigative report from 2010 that showed that house has settled and it is suspected that this is due to sinkhole activity.

Based on this finding, I approached the sellers agent and he immediately agreed to drop the price of the home to 55K (originally it was priced at 80K).  As I said, not permit was ever pulled, and no damage to the property was found in the inspection.

I am buying it cash, and for long term cash flow.  I can rent it for at least $1000/month.  Yearly taxes are $900 and I am unsure if I can insure it due to the sinkhole.  I will be using a PM.

Would you go ahead with the purchase? closing is today so I don't have much time and would love to hear some pros/cons and any past experience.  What would you do?

[Edward Hamill]

I think you should pass on this property... and provide me the address so I can sneak in a buy it instead!!!  RUN to the closing table.