Buying a home with un-permitted room addition

[Gaurav Nandola]

Hello,

I am trying to buy my 1st rental property. The numbers look good with a positive cash flow expected. However, it is a 1200 sq feet home, which was converted from 2 bed to 3 bedrooms without a permit. I am not sure how to handle this and if this may create any legal issues later on. My realtor tells me that many units here have done that and if the county finds out, I may just have to pay the permit fees. But she added that I should do my due diligence. Does anyone have such an experience here in San Diego?

Thanks,

Gaurav