Foundation Issue... Proceed?
Hey all...new investor here with a question on whether or not I should proceed...
I'm looking to place an offer on a SFR in MO and I'm reading over the engineer's report which states the following:
"Findings and Recommendations (July 2019):
Inspection of the foundation showed that the rear, front, and east walls have moved inward in the past with resulting cracks; the walls have had vertical steel restraints (beams) installed. Lightweight beams were used and they are bending under continued loads; the pressure is also bending the wood cross bracing at the top of the front beams. The bent beams have lost most of their strength to resist the soil and water loads against the foundation.
The front and rear beams need to be reinforced by adding new beams next to existing beams using W4x13# beams (6 at front and 9 at rear). The bent woof blocking at the top of the front beams can be reinforced with 4" x 4" x 5/16" steel angle iron fastened to the bottom of the floor joists and flush to the face of the new beams. All foundation cracks should be sealed with epoxy injection.
The grade along the front and rear foundation walls is low and needs to be improved so water flows away from the foundation. It will likely be necessary to extend some of the window wells. All gutters need to be cleaned."
During this inspection by the engineer, no soil tests, elevation readings or calculations were completed as it was just a visual inspection.
The owner (flip company) has not completed the work (it's been 8 months now). They stated they would complete the work once I submit an offer.
Among the paperwork, there was one proposal/bid that stated for $8,950, they would:
1) install the beams to reinforce wall to prevent further inward movement
2) patch cracks on all walls with hydraulic cement
3) raise window well on N side of home and haul in 12 yds of topsoil to improve the grade around the home
That contracting comp has a 10 yr vertical wall restraint warranty against any inward movement, transferrable if you sell the home. However, proposal does not include repairing sheetrock walls or ceilings, damaged or removing during the installation of Vertical Wall Restraints.
My questions (since I know NOTHING about foundations, rehab):
1. Would this bid fix everything listed in the engineer's report?
2. Knowing this is case by case, on average, would it actually cost $8,950 or should I expect it to cost me a lot more? Does this typically go down a rabbit hole into other worse findings?
3. How would you negotiate the price if you saw this?
a. Listing price of property is $125k and has been on market for 77 days. Would you still offer 125k and ensure I add a contingency of inspection and clear, updated engineer report?
b. Would you deduct $10k from the LP of $125 and offer $115 and do the work yourself? (Knowing it could open up a can of worms?)
4. Would you go through with this as an out of state investor? I have nothing on the table, so I can keep looking, but I also know no house is perfect.
5. Would I have better luck with turnkey???
Thanks so much!
-Ali