Seeking Advice on Potential House Hack Investment

[Nicholas Schwarte]

Greetings forum members!

I am currently exploring an exciting venture for the upcoming school year, as I plan to house hack with 3-4 of my college friends. The property that caught my eye initially seemed promising on Zillow, labeled as 4 bedrooms and 4 baths – a rare find in my area. The possibility of each tenant having their own bathroom and the potential for increased rent revenue was particularly appealing.

Upon visiting the property for a tour, I was supprised to see the house not only featured the advertised 4 bedrooms and baths but also included an additional full bedroom and bathroom, absent from the online photos. There was also a versatile "transition room" that could easily be converted into a 5th bedroom, complemented by a secondary kitchen. When thinking it over there was a couple red flags. Intriguingly, the asking price for this 5-5 home seemed extremely low. And not to mention the home has been on market for 100 days.

However, my enthusiasm was tempered when I learned about unpermitted construction on the property, likely contributing to its extended time on the market. Unfortunately, communication with the listing agent has been lacking, leaving me uncertain about the progress of the necessary permits and inspections. I am also curious about the potential risks associated with unlicensed contractors who may have worked on the property.

Furthermore, I am anxious about the possibility of the seller obtaining city approval, bringing the property up to code, and subsequently increasing the asking price substantially – a concern that raises questions about the deal's feasibility if I don't secure the property under contract promptly.

Any advice and insights can help. How should I navigate these uncertainties, and what steps can I take to mitigate potential risks?

Thank you in advance for your valuable input!