Structural Issue - Bowed Brick and Step Cracking

[Karen F.]

Hi! I'm looking at a circa 1900, enormous original brick triplex (7000 sq. ft.) -- REO property, on deadline to finalize my offer in 48 hours (multiple bid, best and highest situation) and don't have a structural engineer I've deal with. Per my investment strategy, this deal is a very nice fit for my portfolio. But we all know there's always another deal!

PROBLEM: The house has visual evidence of both step cracking and some bowing on two exterior walls. The floors of each unit show some minor slope towards these walls. The interior is dry, as is the basement, despite strong rains. No sign of accumulated water in the basement. Definitely needs to be tuck pointed, and I'd probably eliminate the chimneys which would have to be rebuilt.  I don't know if there was previous water infiltration from the roof, or an issue with the joists coming away or rotting? Should I run, or is this a fixable problem? The deal makes sense if this is fixable for anything up to $30k, with room for all other renovation needs. Even at $50k, I'd be able to run the deal with a 10% cap rate, though I'd rather be in the 12%+ range.

Since it's an REO, I can make it contingent on inspection, and walk if an engineer says its irreparable ... but my offer won't be as strong as another, non-inspection contingent offer. Any and all advice appreciated!