You won't know the answer until you see a survey which shows the exact location of the easement(s) and the improvements.

They know of the issue, as the document they showed me is the survey from the mortgage company for their property.  

However, during our land survey, it was discovered that the old easement from the 1960s when the land was developed, has a utility easement (power company) that runs between the two lots, and now as a result, through the middle of the house.   

Its not directly on the sidewalk and in no way bothers anyone (there's some grass and flowers in that area - it kinda happened because the previous investors didn't even realize its not a part of the houses' lot).the encroachment is pretty small (2') the problem is its the main house that is encroaching so I wont be able to change that unless I demolish the house.This is a cash deal - problem is I wont be able to sell it to an end buyer with financing, down the road if i choose to. ( financing wont be approved due to survey)So to my question - can I apply for an easement from the city and would they typically approve that or do I have no chance? 

We have already done the survey and soil test.

Cost seg company surveys the property - or makes up the numbers, whatever they prefer ;) - and comes up with the following conclusions:- there's $30k of 5-yr "personal property" in that house- there's $10k of 7-yr "personal property" in that house- there's $25k of 15-yr "land improvements" in that houseAfter the dust settles, the investor has an immediate $65k depreciation deduction and feels like Rihanna on Super Bowl stage.

But, its such a hard thing to quantify because its a random survey of home owners.  

-landscape, management, trash, pest control, etc.j)Full documentation of security deposit accountk)Property tax assessmentsl)Current rent rollm)Most recent 12 months of bills for water/sewer, gas, and electricitya - depending on how the property is held, the seller may or may not have thisb & c - basically, I'm trying to piece together 3 years of financials, as this will give lenders greater comfort and give you and idea of any trends.d - this is a list of the personal property that comes along with the asset: office computer, copier, leaf blower, etc.e - some sellers may have surveys, Phase 1 Environmental, old appraisals, etc. 

Some get listed as "room for a pool" but once surveyed and a site plan is worked up, there is not enough SQ ft left or you end up with a bathtub pool and tiny pool deck.

Survey the house and take care of the easy fixes including:Fix all loose tiles in the bathroom or kitchen.Fix all loose hinges on doors or cabinets.Unclog or replace stuck drawer tracks.Repair any leaky faucets and ensure all plumbing systems work.Remove carpet stains or refinish hardwood floors.Depending on how much time and money you want to spend getting the home ready, you might also want to update fixtures, buy new appliances, install new hardware on the cabinets, and give the interior a fresh coat of (neutral) paint.