This water drainage issue will be a "Show Stopper". About the Only way to resolve that would be to dig a deep trench along the house, and install a drainage system to route the water to the area sewage lines....and install a good coating of tar on the entire foundation. However, if there is only a few feet separating this house from the adjacent property, it might be nearly impossible to get the backhoe/machinery in place to do the dig, and even if possible, would cost many thousands....and might even damage the foundation almost beyond repair.