Basement finished without permits

[Shiri Manor Nisenbaum]

I am looking at a house on Atlanta in Rockdale county. Tax record shows its 3+2 .The seller build in the basement additional 2 + 1.

The property manager say we can get rent for 5 rooms, which is much higher. Renters dont care from tax records that shows there are only 3 rooms

Wont I have a problem to sell it?

What is the ARV of such house according to 3 or 5 rooms?

Thanks, Shiri

[Jim Adrian]

@Shiri Manor Nisenbaum

Yes the taxes will go but so what. You are making money off this property.  The city could make you tear out everything that is unpermitted.  Then you are left with nothing of value and bill to pay for.  Always permit work as its very cheap in the scheme of things.  I recommend doing what @Julie Marquez said.  Make the current owner deal with their issue they created.   You will have issues later down the road.  The permit is for making sure things are done to code for the welfare and life safety of others.  Now you, the homeowner, is now liable without the permit.  Here is your get out jail card and put it on the current/previous owner to take care of or walk away from the property.  Remember if there is a fire started from bad electrical in the unpermitted area insurance will not cover this.