How to perform rehab w/o permits on a sub-to deal: will I pass city inspection?

[Gio Kattan]

Hello Community!

I’d appreciate some guidance on a few matters regarding my investment properties.

I recently purchased several properties in the following locations:

• Ft. Lauderdale, FL

• North Palm Beach, FL

• Plantation, FL

• Pompano Beach, FL

These acquisitions were done creatively, assuming the existing loans via subject-to deals without inspections. As a result, I’m uncertain if any of the properties have illegal additions or modifications. For instance, one property seems to have an extra bathroom that is not listed in the county records.

I plan to make some modifications, including removing a closet wall to expand a bathroom and taking out a kitchen island that contains electrical outlets and a switch. Additionally, I’m considering converting a garage into a bedroom.

If I want to list these properties on Airbnb, I understand I’ll need to obtain the following:

• BTR (Business Tax Receipt)

• CU (Certificate of Use)

For these, I’ll need to undergo a city inspection. My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability. For instance, will I have to undo the bathroom that was already created?

I’d be very grateful for any advice or recommendations on how best to approach these modifications.

Also if I were to refinance in the future to pull out cash from the property, is this something that banks could refuse to lend on if I have code violations of lets say a wall that was moved or removed?

Thank you for your time and assistance!

Best regards,

Gio K