Rehab without Permits, PLEASE assist!

[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

[Peter Mckernan]

 I would check with a local realtor that are doing deals in this area and local PMs in the area that deal with STRs to give you the answer on that! 

For the refinancing question, if you are adding square footage, adding a bathroom, or adding a full room etc. This stuff will hit you if the things were done without permits.. I.e. a property sold down the street with 1 extra bathroom and 250sf more. If you think this is your comp and you did the work without permitting it, the value from the bank will not be the same as the other comp sold because they will ask for permits/city confirmation this was truly added to give the value. The appraiser will ask for permits for the work done, and if there is non to be provided he/she will not give the value and in turn you will not be able to get the full amount of money out of the home you were hoping to get.  

[Elizabeth Castillo]

Hello Gio, 

I can help you here! I know what exactly it takes to obtain a post-construction permit to bring any un permitted structure into compliance. I have a team of highly experienced permit expeditors who are well-versed about all the current laws regarding building permits and paperwork in Florida. Over the years, we have helped thousands of homeowners get their unpermitted work retroactively permitted among the communities we serve.

Based in Miami, we work all over Florida. 

Elizabeth 

Ig: thepermitqueen 

PermitsQueen.com