Contemplating Getting Certificate of Occupancy or As is sale

[JR Voris]

Hello everyone. 

I purchased a 3 family property in Newark off Bloomfield Ave all cash. I went over budget, ran out of money and everything is complete except for kitchens and some work in bathrooms. I've been at this for while, am tired, and would prefer to sell it to another investor so they can finish the property and get the Certificate of Occupancy, instead of finding investors or partner for another $10,000 or so to finish the property myself. I have also heard Newark is strict with obtaining the CO. Since there is just minimal work left to be done, would I still have to discount the property a large amount just because another investor has to get the CO? If the property is worth $250K occupied and finished, what would be a fair price to attract another buyer? Any advice you have on whether its worth it to keep going or sell as is now would be appreciated. Thank you all in advance.

[Ro Maga]

Talk to the city first. I believe you can get a provisional CO without too much hassle. It will basically list all the things that need get finished ("violations") before anyone can live in the property and give you a future inspection date, which can always be moved back. Our bank accepted a temp CO when we bought. Our building had been vandalized, so there was no water and the bathrooms had to be redone. I went to the "hearing" which was a quick meeting in a desk at the building office. The process Is not so taxing as to merit a huge discount. Don't let fatigue get the best of you.

Good luck!