Termites: Deal-Killer or Not?

[Story Moller]

Hey guys,

This is my first BP post.

I am a new investor from Mississippi and in the process of closing my second deal.

During the inspection period we discovered termite damage in two of the rooms. My contractor indicted the following costs associated with termite damage if they are still active:

$1800 termite treatment

$600 repairs (drywall, studs, paint, etc.)

$2400 total

I was able to get this property for 67.5k and would be able to generate $1200/month in rent or 140k in flip potential with 20k in rehab costs. I have termite inspector coming out this week, but my questions for you guys are:

Do my contractor numbers seem somewhat accurate? Or I should I expect much higher costs in repairs (>10k)?

Besides tearing the drywall to the studs, is there any other way to tell how extensive the damage is?

Would you move forward with this deal knowing that termites were/are on the property and the flip potential is 140k or rent potential is $1200/month?

I appreciate any input. Thanks.

-Story Moller