Need expert advice! How scary are foundation issues?

Question

Hello Bigger Pockets community!

I'm a newbie working on getting into my first flip. I'm super green so wanted to put this out to this wonderful world of experts I've been reading here at BP.  Reports just came back on this house we are offering on and some of the pest report showed issues with the foundation. Things like fungus damage of the subfloor, support posts in the crawlspace in soil contact, hairline cracks, and (scariest to me) no foundation on a portion of the structure though majority is pier and block.  Am I crazy to continue with negotiations? The property was built in 1900, has a ton of charm and in a historic neighborhood.  The numbers work for me considering a reasonable amount of work to do but the possibility of these kind of projects being a Pandora's box situation seems high.  Am I wrong?

Any advise, experience or words of wisdom is appreciated!!

Thank you!!

Mindy Jensen · Answer

I wouldn't necessarily run away from these problems, but @Michael Clantongave great advice - have someone come out and give you some bids on fixing these issues. You don't want to guess on a repair cost, and blow your profits or worse, lose money!

Account Closed · Answer

You're right to have reservations.  Renovating a 100+ yr old "historic" house is one of the most challenging and difficult tasks...for anyone; I can't imagine taking this on as a "super green", "newbie".  My advice: don't do it.  Find simpler projects.

Sarah Ziehr · Answer

Where did this report come from? If this was from an inspection you had performed, a. I would attend inspections going forward and b. call up your inspector and get clarification on these points (if you had attended he would have walked you through these points).

Hiring a contractor is also a good idea, however your inspector (if they are good) can give you rough estimates or tell you directly if its something to walk away from.

Michael Lewis Lee · Answer

Hello Meghan!  When just starting, I would advise you to stay away from a foundation problem.  That expense is too various. The only exception is it's use.  When selling it can hurt you too much over a rental unit.   If you get a great deal with the worst case scenario estimate of the possible foundation expense it might be OK to acquire it.  Good luck!

Michael Shuell · Answer

Don't forget that you may also need to upgrade the smoke alarm system, which may need to be tied into the electrical system (hardwired) for a legal rental property

Michael Shuell · Answer

was the portion of the house w/o a foundation an addition, and if so, was that addition permitted?

Lots of things can be wrong with a 115 year old house.. electrical, plumbing, etc.  Doesn't sound like a great house to start with unless you have cash, time, and knowledge.

Matt Holmer · Answer

I was so excited to have my first HUD home accepted a couple weeks ago.  Contract price was $46000 and the potential ARV was around $100,000.  Minor cosmetic throughout, but there was a foundation issue.  Thankfully, the day the bid was accepted I was able to get a foundation repair company out to inspect before sending my earnst money.  Boy am I glad I did that!

Two of the 4 walls needed to be completely replaced as there was 6+ inches of inward lean.  The other two could have gotten by with interior bracing every 5 feet.  In total, the estimate I got was going to be north of $25,000.

I passed on the house and now it is sitting back on the market.  If it ever gets down in the $25,000 range, I might put in another bid.

Alex Franks · Answer

Great advice as foundation repair can get nasty. Especially when dealing with older houses. I would not only ask for a couple contractors. I would find along with GC , companies that specialize in foundation repair. It may not require much at all. Keep in mind a GC is going to call a foundation guy in as well. So might as well go directly to the guys who do this on a regular basis.

Alex

Jim Adrian · Answer

The fungus issue is due to moisture and ventilation. You need more ventilation.

Hairline cracks are not a big deal.  Concrete shrinks thus the cracks. Seal them up.

The post in contact with the soil can be wrapped with aluminum flashing 6" below grade to 4" above grade.  The post can/will rot out when there is moisture present.  If no moisture present then not an issue. It is always better to get wood up off the ground by using concrete pads.

If the there are no major cracks like 1/4" wide or more, then you most likely you wont see any more cracking in the future.  This house has been there for over 100 yrs.  If it was going to move it will have already moved.

This is all speaking blindly as it never hurts to call in an expert.

Need expert advice! How scary are foundation issues?

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