Permits and the problems accociated

[Chad Clark]

I'm curious about permits and the problems that can arise from needing them.   Ok, I'm in Michigan and I tend to do simple refresh type renovations.  Nothing too invasive.  New faucets, floors, paint, lights, trim and a bunch of things to make it look way better than before.  I have a ton of tricks to get things looking great.  

Well, I ran into a property that needs a ton.   I don't mind doing electrical, but I'm not an electrician, and this place needs one.  Ok, so permits are going to be a thing and I'll have to hire someone to fix this mess.  It's past what I can do.  Walls are going to have to come out.  I know we have to have an inspection for it if you do that.   I've heard some horror stories about another investor getting into a mess because they called an inspector out and they made him update the firewalls in the walls.  Eeek.  No idea what that entails, but I heard he had to hire an architect to get it fixed.  Ouch.   Since this is already going to get a little pricey with an electrician to come in and sort out the mess, I'm wondering what else can I run into since walls are coming down?  

I'm going to have to do some framing, drywall, and basic stuff, but I just don't want to run into some junk about how something isn't up to code and blah blah blah.   What all do they look for?   Might as well get this checked before I'm in the money pit.  

Here's the kicker, potential to earn over 700% ROI.   Yeah, it's that good.  I can get in for virtually nothing, it's the repairs that are going to kill me.  But the land and foundation make this close to a million dollar monster when finished.  Waterfront, horse stables, acreage, huge amount of square footage, etc..  

I need to have an idea of what to look for to not get in over my head.  

[Bruce Woodruff]

I would hire a local General Contractor and pay him to go through the house and give you a Scope Of Work with attached budget. He will (should) know the local Building Inspectors and what they will insist on vs what they will let pass.

This is the only way I can see that you will know for sure what the property will absolutely need and what it will cost. Unless you do something like this, you are just guessing and that could hurt you.

Sounds like you kinda know the industry, but you need an expert to maximize the return on what sounds like a fantastic property....