About to close first house - inspection report revealed TERMITES!

[Murtuza Bengali]

Hello dear BP members,

We are rookie investors who have been studying the markets, talking to agents, property managers and fellow investors diligently since the past few months. After going through multiple deals and failing to acquire any properties we finally secured a conditional approval on our bid for a 1950 SFR in Winston-Salem, NC two weeks ago.

Our due diligence period ends on February 28th. We new when we bid that the house needs about $8K to $9K worth of refurbishment. However, the inspector recommended a termite inspection which has revealed infestation from the under the crawl space all the way up to the attic. By the looks of it only random wood members in the foundation have any evidence of treatment but the rest of it, including window frames, interior foundation walls and attic show no sign of treatment. This possibly points to years worth of neglect from the owner and no annual termite checks. (I'm attaching the copy of the report for your reference below)

My question to BP members is this. Would you recommend proceeding with this deal or back out? In your experiences are termite infestations of this nature (from the foundation up to the attic) solvable. If yes how much approximately can one account for such a repair. Any words of advice on how to proceed will be greatly appreciated, especially since NC has a due diligence component on top of earnest money which we now stand to lose if we back out.

Thanks in advance for your guidance!

Murtuza

[Russell Brazil]

Quote from @Murtuza Bengali:

Hello dear BP members,

We are rookie investors who have been studying the markets, talking to agents, property managers and fellow investors diligently since the past few months. After going through multiple deals and failing to acquire any properties we finally secured a conditional approval on our bid for a 1950 SFR in Winston-Salem, NC two weeks ago.

Our due diligence period ends on February 28th. We new when we bid that the house needs about $8K to $9K worth of refurbishment. However, the inspector recommended a termite inspection which has revealed infestation from the under the crawl space all the way up to the attic. By the looks of it only random wood members in the foundation have any evidence of treatment but the rest of it, including window frames, interior foundation walls and attic show no sign of treatment. This possibly points to years worth of neglect from the owner and no annual termite checks. (I'm attaching the copy of the report for your reference below)

My question to BP members is this. Would you recommend proceeding with this deal or back out? In your experiences are termite infestations of this nature (from the foundation up to the attic) solvable. If yes how much approximately can one account for such a repair. Any words of advice on how to proceed will be greatly appreciated, especially since NC has a due diligence component on top of earnest money which we now stand to lose if we back out.

Thanks in advance for your guidance!

Murtuza

 Every house with a yard in the Mid-Atlantic has termite damage. The question always is how much. Words on paper dont reveal anything. Only visuals can help here.