All Forum Posts by: Dale K Poyser

After reading all the comments and suggestions I think what I will do is call the city and also call a few general contractors after the fact to get estimates on what it would cost to get things properly permitted.

The goal was to do an appraisal and get the PMI taken off and then look into HELOC for the posssibility of future investments. If not having permitting could cause issues with insurance and tenants then it definitely sounds like something I should make a priority.

It's good to know I may not have to gut everything, but also good to know what my risks and options are.

As for the glass around the loft I think the points on this are valid and therefore, I will pass on the glass walls.

@Jill F. The property is in Southern California

Thanks again everyone!

Dale

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True, but hindsight is 20/20. Now Im just trying to see what the most practical path is short of ripping everything out. Thanks for the comment.

Originally posted by @Frank Hinck:

@Dale K Poyser

Overall the whole thing should have been permitted unless you’re out in the middle of North Dakota where’s there’s no building codes. Building the walls without framing inspection is 1 issue, the plumbing and electrical work is the bigger issue if those Plumber and Electrician did not get permits.

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Thanks Jack, in worse case scenarios how much do u estimate it would cost to rip the bathroom out. Thanks for the "as is" suggestion as well.

Originally posted by @Account Closed:

It appears that you are going to find there are another 20 or 30 code violations e.g. proper drain & sewer vent pipes, minimum space for fixtures, ventilation, etc.. There are many buyers who don't care if additions are legal and won't get the city involved when buying. When we purchase or sell properties with illegal additions we sell 'as-is' or many times we will rip the bathroom out and make everything original.

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Hey BP community,

My gf bought a condo 3 years ago. The condo is 900 sqft 1bd 1 bath with a loft. We added a full bathroom to the loft area so now the condo is 1bd 2bath with a loft. The next step is to enclose the loft area so that we have a full 2 bed 2bath which will be worth as much as the other 2bd 2bath in the area.

On the new bath we did not get it permitted, will that hurt us when we go to the bank to have it appraised? will we have to gut the place to have it permitted? Some of my friends have said the appraiser wont need to get into the walls or anything and we should be fine. And some have said we may have to rip everything up.

On the loft conversion, my GF was to enclose the area in glass as opposed to using drywall. I have seen the room w/glass enclosure done in a lot of pictures and it does look a lot nicer than just the drywall. But this does not seem to code as there is no window Egress. There also might not be enough space for a closet but I think we can find space somewhere. What are your thoughts on using the glass and still getting it classified as a second bedroom. Do people just do the glass enclosure and not worry about it being considered a bedroom?

Code says fully enclosed with a closet, door, and window.

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Originally posted by @Account Closed:

What is usually expected in terms of paying utilities? Do the tenants pay all or is there something that is customary to expect? thanks

Depends on the area and how competitive things are in the rental market, but in my opinion having the tenants pay their own utilities is customary. In the case of a condo where the association pays for certain things like water, then you would advertise "no water" when you market the property.

Paying for utilities will kill your profit margins and if tenants don't have to pay for utilities they will DEFINITELY run up the bill.

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Originally posted by @Lynnette E.:

Originally posted by @Dale K Poyser:

So are you saying you can bid online? has anyone ever been successful getting a property from this website?

I have successfully bought from this website 3 times. Sometimes it works, sometimes it is goofy.

One that I had bid on for about 6 months, always around $57k, but sometimes up to $63k down to $47k. FOR SIX MONTHS I BID! Then I went on vacation for 3 weeks and it was gone. Last week it was listed and now it is just pending on the HUDhomestore at the exclusive only period for $60k. The could have sold it almost a year earlier, in much better shape as it was vandalized over and over for basically the same amount. No realtor fees, they would have gotten more.

During the time I was bidding, I watched 3 windows get broken, none fixed. Once after I complained that people were moving back in after their eviction and taking out the furnace, (they already had the air conditioning), kitchen cabinets, etc, they did board up the window and lock the doors with padlocks. They crushed to corner of the siding, ruining it. Destroyed the 3 exterior doors by the way they padlocked the century old doors. Metal ceiling tiles were scrapped, really ruined that house during their holding.

They used the AVR at $159k, with a reserve of $105k but with new plumbing, wires, kitchen, ceilings, walls (they ere paneling and torn wall paper), HVAC, windows, rain damage from broken windows, etc. it was not worth anywhere near that amount. Also in this area the 1900 houses would go for $159k, but the 1929+ houses go for more like $125k. This was a 1930 house. Auction.com does not get the details of the prices...they just average old as old. Victorian vs depression house prices are very different.

Thanks Lynnette, I'll do somre more research on this.

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Originally posted by @Carlo Mantovani:

@James Gates thanks for the great article. I also live in California and looking to start BRRR soon (hopefully in 2020) through a HELOC. Unfortunately I have no partners (at least not yet). My dad and my sister are very interested in this also but they wont be able to jump on board until 2021 as my dad wants to pay off his mortgage before starting a new adventure (only a year left). what do you think I should do? jump the gun and go in it by myself or wait one more year (save more money) and then partner with my other family members so we can have a much bigger investing fund? (my dad's home is worth over $800k and will be fully paid by mid 2021, my condo is worth $550 with a $260k loan on it)

@Carlo I'm no expert but it sounds like you have more than enough equity to get started right now if you wanted to. Just make sure your numbers are good on any deal you find and that you have enough cashflow to handle any additional debt you take on, good luck!

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So are you saying you can bid online? has anyone ever been successful getting a property from this website?

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Interest rates have already gone down a bit I think. There is a mad dash right now on the refinancing process

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Phoenix, Arizona

@Account Closed why not? A few people have suggested that Sacramento is a good option. What are they missing?

Dale

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All Forum Posts by: Dale K Poyser

Dale K Poyser has started 5 posts and replied 146 times.

Post: Added second bathroom without a permit, am I screwed?

Post: Added second bathroom without a permit, am I screwed?

Post: Added second bathroom without a permit, am I screwed?

Post: Added second bathroom without a permit, am I screwed?

Post: My first rental property, I am excited and fluster. What to do?

Post: Auction.com houses to HUD houses....What's up?

Post: FIRST BRRR Complete! Details + Pictures!

Post: Auction.com houses to HUD houses....What's up?

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