Potential first deal foundation issue / out of state
My husband and I are first time investors, we have a friend in Kansas City who is in the real estate game and says it's a great cash flow area. We flew out there last week and found a duplex in a decent area (edge of Waldo). The lady who owns it owns the whole street and]is selling 1/year. We wre hoping to buy the whole lot if this one works out well.
We have an accepted offer in and We've found out there is "excessive lateral movement". They are having epoxy and i-beams installed. The realtor says KC is built on clay soil so it's not uncommon. It's listed for $140k which is a great price. My husband thinks this isn't a problem. It doesn't work well enough in the numbers for me to be on board with a foundation issue. The rents have not been raised since 2007, so we have room to raise rent. THis is the numbers with rent as is.
What do you guys think? We are first time investors and out of state, which also worries me.
Thank You!