First Long DIstance BRRR! Foundation + Basement Water Issues REO

[Ryan Zomorodi]

Hey BP Community-

I'm working on my first BRRR - and it's turning out to be quite the challenge.

1925 built multifamily property in Cleveland, OH, purchased as an REO (AS-IS, buyer assumes everything, no disclosures, etc.). This property needed everything. Foundation, electric, plumbing, HVAC, Roof, Siding repairs, interior, the list goes on.

My question is concerning the wet basement (cement block), which has a bowing wall, peeling paint, and water seepage, primarily where the floor meets the wall. The moisture increases every time it rains, which shows itself seeping through small cracks and puddling on the floor. Very musty in the basement and possible signs of mildew.

My interpretation on the situation- it appears that the underground drainage around the perimeter has failed, causing water buildup and stagnation underground, This causes pressure to the walls, and has resulted in a bowed wall and water intrusion into the basement. Note: the basement floor is poured concrete, and is uneven in places, where it seems like the soil underneath has washed away and caused the floor to settle in some areas (not a huge concern at this point).

I've had a number of contractors and waterproofing companies evaluate the situation and suggest anything from interior water proofing and wall repair (I-beams or carbon fiber straps), to exterior waterproofing and rebuilding the foundation wall.

From my research, it doesn't seem that interior waterproofing will solve the problem, and the I-beams are only a temporary fix vs. rebuilding the wall and exterior waterproof. The bricks aren't in great shape, so I'm considering rebuilding the wall. There is a deck in the back and front of the house, and the sides of the house are very close to the neighbors, creating obstacles for the work. 

Just wanted to throw this out there and see if anyone has seen these issue on a house before, and what they did to solve it. Please review these pictures and let me know if you have another opinion on what could be going on, as well as the best long-term solution.

Thank you,

Ryan Zomorodi