All Forum Posts by: Josef S.

I think it does meet local requirements (I looked at your list and the building code for the area). It appears to meet all criteria, I am just not sure about how many outlets it has (I didn't count them). But building code requires that the outlets are protected by an "arc-circuit interrupter", doesn't seem like it needs a specific # of outlets. Anyhow, it does have windows, doors for ventilation/natural light purposes, and is the min. sq ft etc. It also has a closet (although closets are not mandatory according to the building code)...I am most concerned about the fact that the permit was done for an "addition"...not a bedroom. Can I list the house as a 3 bed instead of a 2 bed if I were to buy it? (It is currently listed as a 2 bed) Wayne seems to think so, as do I, and my agent....if anyone thinks otherwise....please share why...

....my school of thought goes as follow...the "addition" is permitted, meaning the sq. ft where the bedroom is located is permitted...hence it is legal. It meets all of the building code req for a sleeping room (bedroom)....hence it was done to code....seems logical...I think...

Glad you brought up that point about what the lender is looking for...
The property has been reduced several times (has been sitting for a while) started at 325K...then 310...now it's at 270...which brings me to my next point...

The property needs quite a bit of work. New elec. (panel, re-wiring, the whole nine yards), new floor, termite work, new kitchen, new bathroom, paint...you get the picture. Only thing that is good is the roof (about 8yrs old), cooper plumbing and foundation. That being said I feel like I have a lot of leverage? Especially because I am making a cash offer, 7 day close, no contingencies. I was thinking of offering 85% of the asking price? So that would be about 230K I might be willing to go up a bit though. FMV on the property once it has been totally rehabbed is about 305-320K

I want to offer 85% of asking price, but I have concerns about being outbidded, and that the lender won't give me a chance to counter-offer? (They'll think I'm a low-balling them?) Am I right about that? Also, do you think 85% is too low of an offer? I know ultimately, it's all in the lenders hands...but what are your thoughts? Thanks!

Yes, the permit was closed out/passed inspection. As for it not being on the real estate lisiting....I wondered about that as well. I know that the listing agent is an agent that does a lot of lisitngs....perhaps he didn't look at the property and just went with what the county records say? And yes, the 3rd bedroom/addition does have a closet and window, I saw it when I inspected the property

My first post...I must say, after reading BiggerPockets for the past few weeks...it's pretty awesome...couldn't help but become a member myself...

Anyhow, I have decided to pursue the path of buying SFR (in CA) with the intent of flipping them...I'm quite new to this particular area of real estate but have years of experience in commercial/multi family. Hence, I do have a crew that I trust which will be doing all the rehab work. I just tried to purchase my first house...someone outbidded me and made an offer for listing price...

However, I have now found another property that I think has much potential, however there is an issue with it. It is a short sale, however on the listing one of the bedrooms is not included. (Instead of 3 bedrooms it shows as only having 2 bedrooms). I did some research and got copies of the permits pulled and found out something rather interesting...

There was a permit done for an addition to the house, which is where the 3rd bedroom is located. I believe that because they did the permit simply as an addition and not for a bedroom this is why the 3rd bedroom doesn't show under the county records? (I am assuming this, any insight would be appreciated). If that assumption is correct, it leads me to my next question...If I purchase the house, could I do my rehab work and then list it as a 3 bedroom house? (Considering that the additonal space where the 3rd bedroom is located was permitted) OR would I need to have the city inspector come out and get a permit done solely for the 3rd bedroom? And then I could list it as a 3 bedroom? I am looking to put an offer on it ASAP, so any thoughts or insight would be much appreciated...