How much slope is too much slope. Pass or move to Inspection..?

[Ross Gilchrist]

Hi BP community!

Looking for some experienced assistance to help me through a negotiation for a 3 unit block apartment building built in the 70's with a slight sloping in the floor-plates towards the centre of the structure. Building is well located and adjacent to Ottawa, ON and generating close to market rents with updated units. Aside from some exterior TLC, new windows, and smaller inspection issues which can be fixed with time and investment I'm somewhat suck in a counter-offer situation based on a foundation issue. Hoping is can get some high level feedback on how serious an issue this is for a) future re-sale, and b) risk of additional capital costs or structural repairs

- Building was purpose built in the 70's with 3, 2 bedroom apartments stacked on-top another over a flat roof

- Units were renovated in 2017 and show a noticeable but not crazy slope in parts of the floor plate towards the centre of the property.   There's no currently cracking in the drywall and it does not appear to affect the lease-ability of the property since one unit was recently rented at close to market rate.

- General view from the seller is that this is how the building 'settled' many years ago.   Foundation is block foundation with a crawlspace underneath as shown in the photo's below. 

- Comments from the vendors inspector: 

"Condition: The ceiling structure is invisible but the structure has moved on the 3 floors and generates a level problem towards the center of the building. Beams carry loads horizontally from floors and walls to foundations, walls or columns. The beams are made of wood on the front-to-rear transverse span of the building and supported by artisanal posts (4x4 on a concrete block, piles of stones and / or blocks resting directly on the ground). We recommend the advice of a structural expert in order to propose solutions for leveling the beam and the support posts in order to promote leveling of the floors and adjacent walls (ground floor, 1st floor, 2nd floor)."

Question: I'm mid negotiation at the moment and trying to determine if this property should be an absolute Pass or if this is something that can be 'fixed' or re-supported by a good foundation company to remove any future concerns of further deterioration.  Thoughts welcome.....   Ross.

- Pic from kitchen ceiling, renovations have adjusted for sloping in the units. 

[Joe Splitrock]

@Ross Gilchrist in my opinion that is far too much slope for the age of the building. The owner should have fixed the problem before renovation. You can jack up a building and add supports, but doing so now would require full renovation. This type of issue is common on 100 year old buildings, but really shouldn't be happening on something built in the 1970's. I guarantee they didn't properly support under those blocks and that is why it is sinking. You will need a structural engineer to look at it to tell you the true extent, but if they are trying to negotiate up your offer, it may be good to remind them that this foundation issue is really bad for the age of the home. They are lucky you are buying it.