Investment property without permits

[Spencer Woodring]

Hi All, 

I’m looking into an investment property where the current owner rents out the house by the room. After he bought the house, he added 2 bathrooms to make this more attractive to tenants. Unfortunately, He did not pull permits to do so, because his contractor told him that it would be 15k to pull them. 

I would like to purchase the property, but I would have to make sure everything if legal and up to code. I am a new investor and have never done anything like this before. Any help or guidance on how to cover myself legally and make sure I am making a good investment would be helpful. Also, I don’t know if this would hurt my exit strategy in the future if I decide to sell it. Thanks in advance. 

[Spencer Woodring]

Thank you for the input. You are soo right. It is a huge risk. I am no longer entertaining the idea, but I definitely appreciate and agree with what you said.