Need opinions! 4-Plex in Great location - foundation problems

[Bobby Balow]

We found a great, recently redone 4-plex in a location that our property manager says is ideal. The sale is as is and will be our first long-distance property that we will not see before placing an offer. We found out that there are foundation issues that are estimated to cost around $18K, which isn't a total deal  breaker, but I've never dealt with foundation problems before. Can these issues come back? How likely is it that these problems might lead to other problems? We are pretty new to real-estate and haven't purchased a "fixer-upper" before. Thanks so much in advance.

[Costin I.]

@Bobby Balow - 18K is a serious amount, this is an unseen property, your first fixer upper and you are new to RE - this is the trifecta+ of no-no's. Mitigating risk is one of the key of success in RE - you need to eliminate at least two of above negative factors - look for an "easier" project as your first one.

Not to scare you, just to make you aware, there is more to foundation repairs than just the foundation. Here is what I collected as "warnings" or lessons (from various sources and some experienced myself) about foundation problems and/or repairs:

1. If you have brick on the exterior, you might have to do tuckpointing. $$$

2. If you have tiles inside, the tiles will crack. And if they have to drill holes for interior piers, you pretty much will have to replace the entire flooring. $$$$

3. You'll have drywall cracks, so you should factor in drywall repairs and repainting. $$$

4. If the doors were adjusted to a crooked foundation, you might need to readjust or even buy new doors. $$$

5. A hydrostatic plumbing test is recommended to be performed by a licensed plumber post Foundation work. Plumbing leaks may void warranty. Old houses have cast iron pipers that will disintegrate (because of age and/or foundation shift). You'll have to replace all plumbing at that point. $$$$

6. Depending on how bad is the foundation state (how many inches you have to correct), is very possible the sewer line will disconnect/break in the horizontal portions. Repairing that requires tunneling, a repair that could be very expensive. $$$$

7. If the driveway- garage differential is big (for example, the driveway slab is sunken and you need to raise the house, you'll end up with an even bigger gap after repair) you might need to replace the driveway. $$$$

8. If you are dealing with an addition built on 12" beams (or if the original foundation is old and not built to current standards), the repair company might not be able to push the piers down to refusal depth or psi due to the beam not taking the load, thus leveling it, but not guaranteeing it will not continue to move in the future, thus not providing warranty.

9. The owner may be required to provide a structural engineers evaluation prior to warranty work.

10. Damages to the property, interior and exterior as a result of the foundation movement are not covered, during and after works completion. This usually includes but is not limited to PLUMBING, flooring, landscape, utility lines and masonry. The foundation repair does not cover any repairs that may be needed to the home during and after works completion. And you'll have new cracks in unexpected places, old cracks that will not close, but instead enlarge. 

My suggestion is to add at least 25% to the cost of the foundation repair as mitigation to the problems that will come from the foundation repair.