Would you offer on this house with foundation issues? (picture)

Question

I found this house by Driving for Dollars/Direct Mail. However, it's going into foreclosure and is set to be auctioned in August. It's next to a ravine with a creek running through it. The retaining wall has collapsed which made half of the backyard collapse also. That exposed pipe is the sewage line. There are also two trees growing down onto the roof. Inside, it's a hoarder house. Junk and trash piled up everywhere! It would be a complete gut and remodel. The best thing about it is it's in a very desirable area.

I've run the numbers, and I don't think I can offer enough to cover what is owed to the bank. In addition, I'm relatively a real estate investing beginner. I don't want to bite off more than I can chew.

Thoughts?

I've run the numbers, and I don't think I can offer enough to cover what is owed to the bank.  In addition, I'm relatively a real estate investing beginner.  I don't want to bite off more than I can chew.

Thoughts?

Jake S. · Answer

Hey Joe, I think I'd avoid getting into this, especially if you are more on the beginner side of things. Without a lot of experience, costs could be through the roof on this property

Kenneth Garrett · Answer

@Joe Alford

This is a huge project.  I like challenges, but not this one.  Let someone else take it on.

Good Luck.

Mindy Jensen · Answer

@Joe Alford, this isn't a "foundation issue" this is much bigger than that.

Walk away, this is biting off WAY more than you can chew as a newbie.

James Mc Ree · Answer

It looks like bulldozer bait.  Consider it for a tear-down/rebuild, but probably not a fix-n-flip.  As a beginner, think "easy" unless you possess strong renovation skills.

Anthony Rosa · Answer

Issues like this typically require extensive shoring then installing Piles because soil erosion will undermine all cement and block walls.   Alternative, raise the house on stilts like they do in flood zones.

Either way, not worth it! Considering the cost, engineering, town and permit issues and all that can go wrong.

Michael Noto · Answer

I’d stay away from this one. It is the kind of thing where if you have to ask whether you should buy it you should probably pass.

Mikus Zisumbo · Answer

@Joe Alford

This would be definitely something I would avoid. Looks like there is a water runoff problem which is causing the ground and cement to crumble away. The picture below is something we are dealing with locally. Obviously this is on a much larger scale but these homes will be taken out any time now and the city/homeowners can’t do anything to stop it.

[IMG]http://i64.tinypic.com/zjf7dl.jpg[/IMG]

Preston Quinn · Answer

@Joe Alford

That looks more like a soil issue that caused the foundation issues. Not a fun fix.  I’m out on this one if I were looking.

Don Gouge · Answer

In this case you have to ignore how much the bank is owed. You might be able to buy it cheap enough to demolish the house and build new.

Jay Hinrichs · Answer

I don't but I bet my wife does  her maiden name Is Lori Wika and she ran the C 21 office in Longview / worked there and was a top producer in those years...  unstable hillsides on the west coast are a reality.. I have sold dirt in N. CA that were on ancient landslides you could see were the whole hillside sluffed off but that was say 5,000 years ago.

the mother of all though has to be Hilo and all the subdivisions lots built on active volcanic flows  we saw what happens to those. there are probably 20,000 lots that were created there in the 50s and 60s.. you could buy them for 2 to 10k..  all day long..

Would you offer on this house with foundation issues? (picture)

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