Foundation issues in potential rehab purchase

[Justin Kroepfl]

I have been looking for quite some time to find my first rehab in my area. I found one that is in an up and coming neighborhood and could bring in a significant profit, but............we noticed and have since found out it may need significant foundation repair and possibly replacement. My question is: has anyone ever gone through a foundation repair or replacement before and if so was it worth it? Does anyone on here know what an average cost might be? (I know there are tons of variables...just looking for a round about number). Any help would be greatly appreciated!!! 

[Wayne V.]

Hi Justin,

A foundation repair or building a new one is a significant undertaking. Variables include access for excavation, disposal of the old rubble, the new foundation construction itself and then backfill and landscaping. The best approach is to find a foundation contractor (get quotes from three and check references) and then run your numbers back from the ARV to see if it's worth the time and effort. In my book a defective foundation is a major bargaining chip in negotiating a purchase price so depending what you're able to buy it for, it still could be a profitable investment.