@Richie ThomasThinking through this after what you mentioned I think the owner is scared to sell it outright because he would be in hot water due to the condition and the tenants are likely not safe to what the county would expect.

The house we are looking at has foundation damage on an addition that was put on where someone didn't handle drainage issues.

Estimate.Tenants pay for water, electric and gas.Loan for full price 30 years at 4.125%

And the equally fatal opposite is jumping in without knowing how deep the water might be.

A new water heater? 

At 6:45 run to town to rent a Ditch Witch to put in water and electric lines. 

Your down payment is going to be 25%, but your rate should be 5% or less)Length of Mortgage in years 30Monthly Mortgage payment $684.45 Taxes $125.00 Sewer and Water $- (How are you going to split this bill to the tenants?  

There are sealers you can purchase that will fill them in to protect from water and ice damage which can make those cracks larger during winter months.

. - it's all very rough waters for a new investor. 

Behind the white mesh is wood and I don't want water to damage the area over time.