I need advice asap on my property - permit denied

[Femi Ibrahim]

This is my original post: Please see update below:

I bought a single-family house (SFH) in the Dallas Fort Worth (DFW) area from New Western Acquisitions in June of 2019, and my experience has been bad and horrible. I'm still working on the house right now. I seek your advice.

These are the financial details of the house:

Purchase Price: $140,000

ARV: $230,000

Estimated repairs: $40,000 (We’re currently at $53,000, I estimate an extra $7000 to complete the house, making repairs cost totaling $60,000).

Hard money loans: $125,000 for acquisition. I am using my cash for repairs.

Estimated profit after closing cost, sales commissions, hard money interest was supposed to be about $20,000. Right now, I am at a loss.

The house is a 3 bed 1 Bath house, about 1400 sqft. I estimated a repair period of one month before I noticed a lot of issues with the house.

We applied for permit at the city, and we were told that there was no construction permit or plans for the house with the city. In other words, the structure was a cabin by the lake, and additional rooms were added, all without permits.

The building department of the city referred us to the city board to get exception to continue the renovation of the “non-conforming” structure. I have to wait another 2 months to appear before the city to determine if I can go ahead with the structure or not.

I have title insurance and owner’s insurance. I was told by the city that I should seek legal redress as that structure should not have passed a title search.

I don’t know what to do at this moment. Can I seek any legal redress against the seller as the whole structure was not permitted?

I would love your advice at this point.

Thanks

Updated:

Update: I had a meeting with the board today, and I was denied permit to continue renovating the house. I was told I have to tear down the house and rebuild a conforming structure. I don't know what to do now? I have a $125k hard money loan on the house, and $67k of my money in repairs. I need advice. Thanks

[Nathan Gesner]

Time to find a good attorney.