Buying a house with water damage is a risky investment indeed. The water may have caused considerable structural faults and safety hazards in the home, such as unsound walls and mold, and the problems may continue even after the existing damage has been mitigated, especially if the source of the damage has not been properly identified and correctly fixed. Yet, you can easily avoid most of the risks and make sure your investment will be worth it, if you know what to look for and what precautions to take before closing the deal on a water damaged house.