Cracked foundation on duplex (one side sloping) Advice please

[John Humphries]

I recently put in an offer on duplex but discovered a cracked foundation during the inspection. We've since pulled out of the deal, but I'm wondering if anyone has any advice (other than run the other direction) and/or experience with this type of reno.

Basically this side by side duplex is splitting down the middle. One side is obviously sinking and likely continuing to sink as we found a crack in a closet along the center wall. This place has been renovated within the last 6 years and the crack had obviously worsened since the reno. You can see the crack in the foundation along the back of the structure as well as feel the lean of one of the units.  Very noticable. Windows and siding also showing signs of bowing. 

We contacted a few contractors and had an engineering company have a look before we backed out on the deal. All basically said the same thing - It would require some digging to determine the cause and a plan for repair.  No way to estimate the cost until the issue was exposed.  Could be $5000 or $80,000 fix.

This is a hot market with multiple offers on any revenue properties, but we made our findings on this one public, and it has remained on the market for 2 additional months now.  The owners want to get rid of it, but are not willing to fix the issues themselves. Perhaps ripe for a very undermarket offer and could be a great property.

Anyone have any advice on potential ways to procede or creative ways to structure an offer?