Sinkhole is part of sellers disclosures - should I walk away??

[Alicia Gates]

I found what I think might be a good deal (it's a duplex in TN), but when I asked my agent to contact the other agent with questions, she sent back a seller's disclosure form that indicates there's a sinkhole on the property.  I don't know where it is, how big it is, or if it's been repaired, but just a quick good search seems to indicate this could be a $25k repair. 

Even if it IS repaired, I also read that just having the repaired sinkhole automatically reduces the value of the house by at least 10%.  

I haven't pulled comps official comps yet, but just doing some self-assessment via Zillow with similarish homes sold in the last 6 months, this house already priced $25k lower than what those sold for (I say "similarish" because they were remodeled, had garages instead of being a duplex, etc.), which makes me think the sinkhole is NOT already fixed (this is a question I have out to my agent). 

Other concerns - I know many people don't want to be investors in houses in flood zones b/c insurance expense is so high for the investor (while it's much more affordable for a owner occupied property) - is it similar for a sinkhole? 

Other facts about the house: 

Sales price $125k

Built in 1974, but burned down in a fire in 1995, so foundation is 40 yrs old, but house is about 20 yrs old. 

Duplex - upstairs about 1,600 sq ft, downstairs about 1k sq ft.  Upstairs was owner occupied, downstairs rented for $550, but with updates and a growing area, I think we could rent for $800 at least.  Upstairs we could rent for $1,200.  

Is it still worth pursuing or should I just walk away?  Thanks!