Bringing neighbors in for foundation repair on townhouse
Hi, I am evaluating a flip and wanted to get thoughts from the community regarding a negotiation strategy.
There is a foreclosed townhouse with significant foundation problems (40-60k based on 2 estimates). It is an end unit on a slab, and the adjoining unit is also experiencing some foundation problems as it's being "pulled" by the empty house. Contractor believes either rotting plant debris or underground water source is causing the sinking.
Stats:
Built-2007
Arv- 115-130k
Foundation repair- 40-60k
REO list price- 60k
Foreclosed- dec 2013
In my mind, this deal only makes sense if I negotiate the price down below 40k, AND I get the neighbor on board for some amount of the foundation repairs, maybe 10k. Does anyone have experience with this type of strategy? Basically, the neighbor can't repair his house until the end unit is fixed. He has a vested interest in the end unit getting fixed, rather than just watching it get worse and worse as the foreclosure sits for years.
The neighbor tried to file a claim on the "structural guarantee" provided by the builder but it was denied because the structure didn't fail, but the earth below it did.
Thoughts? Maybe I try to get the HOA on board for some repairs? They remove some blight from the community and everyone's home values should improve once the "sinking house" is fixed.