WHAT TO DO WITH THIS HOUSE??? CREATIVE SOLUTIONS WANTED!

[Lawrence Rutkowski]

Hello friends, I have an off market property under contract in San Antonio I need some insight on.  

Summary:

Out of state owner, wants to retire and cash out rental property in SA.

Under contract @ 125k. If we find a way to move forward, price will come down depending on amount of foundation work required)

ARV- $159,000

Repairs, Literally just foundation. (AC is old, but running and under warranty)  

House is updated and clean. 2 year old roof.

Currently rented at $1300/month. Max rent could be $1325.

House was briefly listed in January, but pulled after they received a foundation bid stating entire house is off, max of 5 inches and would require 26 total piers costing $8500, not including fixing the cracks and probably plumbing that would more than likely break..  Foundation did not appear to be as big a problem as it actually is. There is a slope on the outer wall of the living room, absolutely zero cracks in the floor, wall or ceiling and none of the windows/doors have any issues opening or closing. There is no visible slope anywhere else in the house. I am getting a second opinion this Friday, but I don't think it'll be that far off.

The problem here is, Foundation work of this magnitude cannot be completed while the tenant is in place. Especially with the risk of breaking the plumbing. The tenant is in place until March 2019. She has two daughters, they just rented the house 4 months ago.  

I was going to wholesale this, but two of my buyers weren't interested because they would need to wait 8 months to do the work and cash out. I don't have the funds to buy it and hang on to it until then. 

I realize I could offer cash for keys, but having interacted with this tenant, I don't think thats very viable, and if it is, it ain't gonna come cheap. I'm not disregarding this idea though, just putting that out there.

I was thinking perhaps trying to take this sub-2, inform tenant we won't be renewing lease in March, do the work at that point and list late spring. In order to get $159,000, it will have to be marketed to an owner occupant, doesn't make sense for a land-lord to buy at that.

What are your thoughts people? There's money in this deal, how do I get it?