Duplex Foundation Issue

[John Van Uytven]

I have been looking at duplex. It is an older duplex, Early 1900's. The numbers overall are looking good. Until we had the inspection, then the inspector pointed out the foundation issue in the basement. I had not been down there, until after the inspection. 

That is where the pictures came from. The home inspector labeled the foundation "A-typical" and recommended a foundation expert do an inspection.

The owner discouraged me from getting the additional inspection, because all of the basements.

I insisted that we get the inspection and a bid.

The email from the foundation expert is mostly here. Total price about $16,000. The current owner is saying don't worry about the foundation. It is fine, and just leave it. 

Seem like this is very important, and the current owner is trying to unload this quickly without doing any of the work. 

The water coming through the wall is due to voids in the wall, as well as, the hydrostatic pressure from the groundwater under the house. Our system will collect the water at the floor level and get it out of the basement. If the appearance of the walls or the desire is to not see the water, the walls can be covered properly to the drainage in the floor for an additional $2,066. This does not prevent the water from coming in, it simply collects the water in the drainage system. If the cracks are sealed off, the water will find or create more cracks as the water is under pressure. The more cracks created, the less stabile the wall becomes.

The wall inspected is bowing about 1 ¼” on the short side with the ledge wall and 1 1/8” on the long side. Propose installing Galvanized “I” Beams that can be tightened over time to stabilize the wall.

[Kishore P.]

Unfortunately, you have not provided enough information for me to offer you an educated opinion.

What is your goal for the property, Is the this a FLIP Project, BRRR or Buy and Hold?

Hope you have a contingency of inspection to recover your EMD in the event you want to walk away from the deal.

I'm going on the limb here. As long as this new discovered Foundation Repair still computes with the ARV threshold of 70 % then you should be ok.

Good Luck and let us know what was the outcome.

Regards

Lastly, experts advise investors not to be emotionally attached to the property !

[John Van Uytven]

@Kishore P. thank you for your input. I have gotten emotionally attached to this place, that is why I wanted to reach out to BP community for clearer minds.

I was fairly tired when I wrote the original post. I realize I left a lot of holes.

I plan to use this as a Buy and Hold

It has 1 unit filled with the tenants are paying $500 a month.

I estimate the ARV to be $30-$40K, which is typical in this area.

I offered him $22,500 cash, with a contingency in the offer.

Which to me signals we need to change the offer to about $6-7K.

[Kishore P.]

@John Van Uytven Good Luck, let us know how? you made out with the deal.

John Van Uytven

[Patsy Waldron]

Originally posted by :

I offered him $22,500 cash, with a contingency in the offer.

Which to me signals we need to change the offer to about $6-7K.

Even though it makes sense given the repair estimates, I kind of doubt he will go with the revised offer.... That's 25% of your original offer!