Block Foundation w/ cracks and bowing walls

[Mark Baldwin]

Hi guys.  I'm from SoCal and in contract for my first deal - a 3 duplex package out in the mid-west.  The inspection report came back and the block foundation for two of the properties are in poor condition.  Some of the walls have substantial movement with considerable bowing occurring in several areas. There is also water/moisture build up throughout the subfloor as well.  I had a foundation engineer walk through and said it would be about $12k to place in several steel I-beams and carbon fiber reinforcement to maintain the integrity of the walls for both of these properties.  We're going back to the renegotiation table with the seller but my fear is they wont budge on the price, and if they do not, I'm left with a decision.  

I have a STRONG desire to close my first deal but I'm afraid that this may fog my decision.  I know the foundation is a big deal but these costs don't hurt my numbers too much.  All other mechanicals are in good condition too. Looking for guidance, advice, suggestions, past experience - anything that may help clear my head with the upcoming decision.  Thanks.