There is alot to consider I dug out my basement. First get bids to see
what the pros think, talk to the permit dept. A few things, what is your
water table, just because the neighbor has one does not mean there isnt
a spring down below, you dont want a swimming pool. You need to jack,
support and monitor house level almost daily to be sure you dont ruin
it. You need to figure out how to put in a foundation while removing the
old one and keep it jacked up. You need a permit or you can have your
home deemed un live able. Its going to be 3x more work than you think.