Need advise on how to get out of this property

[Paul Dworianyn]

Hello everyone, I’m looking for advice on how I can get myself out of a property. I’m not interested in finishing the flip myself because I have successfully got myself into the Business Owner section of the cashflow quadrant with my amazon consulting business and that is where I am currently focusing my time and energy.

I own an unfinished flip house that I owe 95K on. I started this flip back in 2001 thinking I would get it done in 2 years but I never got around to finishing it. I am now ready to move on from this house and I’m looking to sell it.

When I started working on the house, I was very young and naive and thought I could get away without getting permits. The village the house is located in requires an occupancy inspection prior to sale, when the inspector viewed the property, they issued a non-occupancy permit for me to sell the property, but they also want me or the next buyer to pay for 3 permits and fines for work not done without a permit totaling 1k.

Several investors talked with the village inspector and they reportedly will work with the next owner to resolve the permit issues without forcing them to tear out the existing work. I’m hoping to sell it and walk away with breaking even or paying a very minimal amount.. Comps in the area have sold for 125 to 160.

Positives of the House:

• Amazing updated high end kitchen all stainless steel appliances
• New Roof
• Can lighting in all bedrooms, living room, and kitchen
• High End basement bathroom includes Jets in shower wall and Heated tile floor
• New Central AC
• New Furnace
• New HVAC ducting throughout
• Newer Vinyl Siding
• Newer gutters
• Many newer vinyl windows
• Newly wired for gigabit speed ethernet in all rooms
• Open cell insulation on second floor roof (solves all cape cod style home problems with ice damming)
• Nice landscaping both in front and in back
• Great curb appeal
• Fenced in Lot
• Full Basement
• Open concept living room
• Very low taxes compared to rest of Lake County Illinois
• Finished will have 2 full baths, 3 bedrooms
• New copper plumbing
• New Natural Gas piping

All Capital Expenditures are taken care of!

These are the house stats:

• ¼ Acre Lot
• City Water and Sewer
• Full Basement
• 1500 Square Feet
• Open concept living room
• Finished will have 2 full baths, 3 bedrooms
• Finished bonus room in basement
  • Was used as a bedroom but doesn’t have the proper egress
• Fenced in backyard
• Can lighting in all bedrooms, living room, and kitchen
• No garage, paved driveway fits 4 medium sized cars

Square Footage:
Basement: 938 sf
Ist Floor: 844 sf
2nd Floor: 533 sf

Finalizing the Flip would require:

• Mounting and finishing drywall on first and second floor
• Finishing the partially roughed in bathroom on first floor
  • Water supplies are ready just under the floorboards
  • Sewer outlet is just under bathroom, PVC drains need to be roughed in
  • Electrical wire is run from the panel to bathroom fan, lighting, and outlet
  • Bathroom fan/light is installed, needs duct added to vent outside
  • Needs greenboard drywall, flooring, toilet, vanity, shower/tub surround
• 4 doors for first floor bathrooms and three bedrooms
• 4 closet doors, 1 for first floor coat closet, and 3 for bedroom closets
• First floor bedroom
  • Subfloor replacement in first floor bedroom (some original floor boards are weak)
  • Connection of electrical outlets - conduit roughed in but needs to be connected to panel
• Drywall mounted, finished, and painted throughout
• Flooring throughout except for kitchen, I suggest tile in front entryway into first floor bathroom, laminate in open concept living room up to the kitchen, carpet the rest.
• Minor drywall patching and painting in Kitchen and basement bathroom
• Trim/baseboards installed and painted around all doors, bottom of drywall, and windows
• Proper railing for both stairways
• Power wash siding
• Minor landscaping, just needs some mulch in beds and some minor weeding in flower beds.
• Two fence panels replaced in back yard
• Basement bathroom needs minor touch-ups on grout and caulking

Other issues that may need addressing or could just be disclosed upon sale:

• Two minor basement leaks only when there is a TON of rain, otherwise basement is dry
• Warped siding in backyard where grill used to be, could be replaced
• Small area of cracked siding on front of house at end of driveway
• Driveway isn’t in the best condition, some patching may make it look better
• All work done on house has not been permitted except for siding and roof
• Plumbing Ventilation isn’t 100% to code and may come up in an inspection

Side notes:

• When I lived there, people didn’t believe my address was real when getting deliveries because of the marijuana culture around the number 420 and the street name of Highmoor, maybe there is play here selling to someone that is into that stuff?
• You might be wondering why I am part of bigger pockets if I’m not actively investing in real estate. I am absorbing as much as I can from folks in your world so I can invest with the cash flow from my amazon business. Also, the information I’ve learned from this community has helped me buy an amazing house for my wife and I in Florida, well below market price.