Stabilizing cinder block foundation (basement walls)

[Doug W.]

I toured a foreclosure today. It has been listed on again and off again since July 2014. I think the reason why it hasn't sold is due to some serious issues with the cinder block foundation (basement walls). Two of the walls have bowed in significantly. At some point they were shored up with steel angle iron beams that were sank into the concrete floor at the bottom and tied into the floor joists at the top. There is no known engineer's report about the repairs.

The house is a 1 story rambler. There is no indication of any settling or disturbance in any of the floors, walls, windows, doors, or roof. I did not notice anything off about the main level floor joists although I did not do a thorough assessment of them. 

Another investor showed up with his agent while I was in the house and left immediately after seeing the basement walls. :) 

My question is would this scare you away as a seasoned investor? Or would you see it as an opportunity to get a house that others will more than likely shy away from? I believe that there is a price that can be applied to any house to make it a "win" for the investor and I am prepared to take this project on if the numbers look right. 

These photos do not show the detail very well. Sorry.  

[Nathan Champion]

You might consider getting an engineer to come take a look and write up a report. If it is an issue you'll know ahead of time, and if it's not an issue you'll have proof to show potential buyers. Here in Atlanta, you would probably pay about $1,000 for a report like that. Speaking from very little experience, it's unlikely that a one-story house with a relatively shallow basement would have a serious problem like that. It's hard to tell what size angles those are, but I would be willing to bet that the problem is contained.