All Forum Posts by: Gabriel R.

ended up instructing lawyer to cancel transaction and I got a call from my broker that seller will drop the price 15k if we proceed. Makes me wonder why he's so motivated now...,

@Matthew Olszak I'm using a conventional loan offer through Freddy Mac for first time buyers of Multi unit properties. We pulled up previous violations on the building and one came up from 2006 for the attic unit. It states owner should remove tenants.  I doubt he will be able to provide a permit for the attic... I'm really confuse about the zoning certificate. My lawyer said he should get some clarity by Monday. 

Hi BP,

I'm in the process of buying a property and have been inform by the lawyer that there is a zoning issue with the property.  I have a property under contract that was listed as a 3 flat with a non conforming unit in the attic.  The property is zone B3-1.  There are currently 3 tenants on the premise paying $100 under market. After running numbers on the BP Calculator I'm looking at a cap rate of 8%. After the Inspection was done on the property the report reveal that the property would need considerable work.  For instance it will need a new roof and there is some "bulging" on one side of the building. A side from this im looking at adding new boilers and windows down the road.During the appraisal the appraiser noted that "The appraisal is made: Subject

to de-conversion of the illegal apartment in the attic $600"   

The seller claims he got a permit to build the attic and that it's grandfather in.  We are in the process of seeing if we can pull a permit for this.   If I have to de-convert the unit that will take a 3rd of the income of the table and will make the deal not as appealing. 

Today I received an email from the sellers lawyer saying they will provide 10k as repair credit BUT that I should be aware that the zoning certificate came back as 1 UNIT WITH A COMMERCIAL SPACE.  My lawyer is looking into this but I wanted to know if anyone has run into something similar? The 1st floor was originally zone for commercial but has since been converted to an apartment.  What  type of implications will this zoning have on my loan? Will I need to convert that unit back to commercial space? 

Any feedback is greatly appreciated. 

Hi Brie I'm interested in attending the next meet.  Do I have to pre register or just show up ?

Isaac I ran into the same issue purchasing a 3flat on the north side. Luckily I found a lender who said I could do a conventional loan with 5% down with a program thru Freddy Mac. I just got done with the inspection and appraisal, so far everything has been smooth sailing. Pm me and I can send over his info. 

Have not been on in a few months as I have been traveling! I recently came across a property that is a 3 flat but the seller "does not warrant legality of 3rd unit".  Will I have a hard time getting a loan for such a property? I have a pre-approval from a Lender but I dont know if they will approve this property.  Has anyone else ran into this in the past?

Thanks for all the great feedback! Property has not been purchase, I was 100% sure I had the property as I offered what the buyer requested.  Seller came back and said he had multiple offers and after a small bidding war I ended up offering 10k more than listing price.  Afterwards Seller comes back and says that the house will not be approve for a conventional loan because it needs a kitchen- he will add kitchens to both units for an extra 20k plus he wants no inspection on the property.   This  has definitely been a learning experience for me and has left a sour taste on my mouth. At this point I think I am just gonna move on and start looking again.  2 weeks wasted.

Last thing I will also need a new fence in the back yard. 

I'm new to bigger pockets and have been listening to a lot of the podcast over the last few weeks.  I'm interested in purchasing a 2 flat or 3 flat in the north side of Chicago but have found the market to be very competitive.  I've finally found 3 "decent" properties that need some TLC to bring them up to their old glory.  I've submitted my offers and the 3rd property which is on the the higher end (200k) has been accepted.  When I saw the property I knew it would need considerable work and after running the numbers I knew it was a good deal but I would have to do some of the fixing.  My question is how do I determine where to start? The property has new plumbing, new HVAC unit, both bathrooms have been 90% completed and new floors. The kitchen on both floors is non existing- Basement and attic are completely gutted plus it looks like it might need a new roof and siding on one side of the building.  My original budget for renovations was 40k but now I think I might of chewed off more than I can handle. 

I have yet to find a property a 2 flat in LS for less than 200.... I call it the elusive unicorn