However, your desire to renovate, or the current owner's desire to sell the property, does not supersede the tenants' rights under the lease agreement, and you inherit the terms of that lease when you buy the property.If the lease does not include the use of the basement and the garage, the owner (or you after you close) can petition the tenants to remove all of their belongings from those areas, but the tenant would presumably have the right to comply and thereby not compromise their continued rights to the first floor (basically, a lease violation that is curable, if cured, is no longer grounds for eviction). 

Dan:If you are absolutely certain you have a good prospect, save the foundation issue, then spend a few hundred dollars to have a structural engineer and foundation specialist assess the integrity of the structure, formulate a corrective plan and provide a budget cost estimate (add a buffer to these numbers).If it still looks like something profitable, and with which you are comfortable, afterwards then why not proceed.However, if this is your first dance with a structurally compromised structure, be very conservative in your analysis as there could be many "oh ooh" moments above the foundation.

It's a compromise.

Apparently, the house was hit by a car and compromised its integrity so it was demolished.

If you go to bed tonight thinking of this issues, ask yourself if you are willing to compromise your happiness for a few bucks! 

I would never, change that to NEVER, invite a stranger into my home or to anyplace that my safety would be compromised. 

I needed new kitchens, baths, waste and vent stacks, heating, 40 windows, new roof, floors, walls, the garage was compromised -likely demo, porch, electrical work, mold in the basement, etc.I assumed ARV $390,000Repairs: $150,000Difference $240,000 (bid at 75% of ARV-Repairs 180k)They were asking $255.  

Both parties may need to compromise some for that to happen.

I compromised with a slightly higher interest rate than I could get but less down.   

My clients and I tend to offer 15 dat DD and then compromise at 10 days if the seller balks at that, just to make sure these can get done in time. 30 day from contract closing.