I want to waterproof from outside, but my neighbors live 2 ft from us, is it possible?
you should always stop leaks at the earliest opportunity. whichever way it's getting in that's where you stop it. don't worry about some old tales about keeping foundation a little moist. What do you mean by waterproofing from the outside being difficult because of 2 feet to neighbour? Are you wanting to wrap the wall from the outside? is that where the water is coming in or is it coming in under eaves or behind gutters or leaky roof...or a leaky drainpipe in the soil?
Unfortunatelly when you ask particular trades people about a difficult to locate source of moisture, they typically only say that they can do x y z...and it will cost $$$ but no guarantee it will fix the problem. sometimes it takes years to find the true source of the problem. addressing it is the straight forward part.