Need some help on foundation problem / opportunity

[Mike H.]

Have a chance to buy a duplex. One side is a 4/3, the other a 2/2.
Here's the issue though - the foundation is off the charts bad.
Seems like one corner has dropped about an inch.
And the other side seems to have fallen and then dipped in
the corner.

The opportunity is that these were new construction townhomes.
They're in unbelievably condition. But the foundation has caused
some cracks in the drywall obviously and the thing needs to be fixed.

Here's my question. Can any foundation problem be fixed?
If so, what are some of the absolute highest estimates you've ever heard of or gotten for a foundation problem? You're probably talking about a foundation for 2,500 to 3,000 sq ft total for the basements of both units combined.

Its got two sides that have fallen.

The good part is that the 4/3 is probably worth 150k and the 2/2 probably worth about 100k. Both are today's numbers.

The other nice thing is that this thing is on a golf course and in an HOA community with a great clubhouse, pool, etc. HOA fees are pricey at $175 per month.

But the view is tremendous.

My plan was to sell the 2/2 and then keep the 4/3 as a rental.

My hope is that the foundation work comes to no more than about 50k so that I can be all in on the 4/3 for about 75k and the 2/2 for about 70k.

Even if I could quick sale the 2/2 and break even, if I can walk away with the 4/3 at 80k or better, it would be an absolute gem to add to the portfolio.
One neat trick is that the bank won't sell them separately so I don't have to worry about competing against an owner occupant. They have to be someone that can pull the trigger on both.

So can anybody throw out some numbers of the most expensive foundation estimate they've ever heard of or seen?

I just found the thing today and am working on getting some estimates asap. But I thought I'd float this one out there to see what kind of worst case scenarios might be there.

Can anything be fixed for 50k? 60k? Are we talking it could reach numbers of 100k?

[James H.]

Nobody could come close to giving you a max cost price for this sort of deal. There are several reasons for foundations issues and the issues I would be most concerned with in most cases would reveal themselves in newly constructed buildings. The main problems you have with foundations is poor drainage, poorly compacted soils, expansive soils or some combination thereof.

John McCombs rental in Fort Worth probably had an expansive soil issue which is common in the Fort Worth area.

I don't know if Manteno has expansive soil problems, but lets assume it does not.

Here I will make some wild assumptions just for the sake of guessing what the problem could be. I could easily be wrong as there could be literally hundreds of reasons. You need to get a geotechnical or structural engineer to take a look - maybe both:

From your description of the property having views, I am going to assume a hilly terrain. This would imply possibly substantial cutting and filling to achieve level building pads. You say the foundation has settled. Lets assume it has settled where you say it has rather than heaved in the other areas. Also, you did not mention erosion. So assuming possibly substantial fills and foundation settling as well as settling occurring without the soil erosion, the residence was likely constructed over poorly compacted fill material. To remediate this type of problem, you would need to install remedial piers extending past the fill material into native soils. You may also need to install remedial beams across the piers to support the floor slab that was designed to be supported on grade but will now be suspended in the air as the soil settles under self weight but the building does not. Simply mud jacking will not work because the grout will pull way from the slab as the soil settles.

The next question is; how deep is the uncontrolled fill material? This will dictate how deep the piers must extend. Also, you will need to verify the bearing capacity of the underlying native soils into which you plan to bear the piers.

If my assumption(s) is correct, this type of repair could easily run to 50-100K.