Found a great FHA house hack.. but there's a "well" problem!

[Patrick Sweeney]

I've got a budget of about $25k for purchase costs and rehab. I am pre-qualified for an FHA loan. I'm looking at a nearby triplex on Zillow for $195k that, with an FHA loan and 3.5% down, would still provide double-digit ROI.

I noticed that the property has been on the market for quite some time, so I called the listing agent, who advised that the property has gone under contract 3 times in the last 6 months and has gone under every single time. 

The first time, an offer was made with FHA financing, but the property failed the inspection because the well is located under the basement - it's not far enough from the property. FHA guidelines state:

"For existing properties, FHA requires that a domestic well be located a minimum of 100 feet from the septic tank's drain field and a minimum of 10 feet from any property line. Should state or local regulations require greater distances, those distances must be met."

The next two times it went under contract with conventional loans, and the buyers couldn't fork up a 15% down payment for it. 

So my question is: Is there a cost-efficient way to solve the well problem while still staying within my budget?

Potential Solutions:

1. Pay to have the well drilled somewhere else? Perhaps talk the seller about signing a contract to have a new well drilled, before I buy with an FHA loan?

2. Qualify for a conventional loan with less money down?

3. Give up real estate investing and play RuneScape?