All Forum Posts by: Jeff G.

Be careful @Phillip Gonzales 

I'm not a lawyer, but I can read. In my state (Connecticut) I understand it to be illegal to discriminate against a tenant based upon their legal source of income. So, if someone otherwise meets rental qualifications here they can't be turned down simply on the basis of the fact they're Section 8 recipients because it's legally obtained income.

You may want to have a conversation with a Real Estate lawyer in your home state prior to declining a tenant on the basis that they're a Section 8 recipient. 

Here is a link to a short but relevant article: Connecticut landlord pays $9,000 for violating state law against source of income discrimination.

All that said, I've heard horror stories too. I can sympathize with your hesitance.

@Wayne Brooks 

You called it. Not only is it a percentage of rehab cost, it's a percentage of rehab cost less inflation from the year the zoning regulations changed until the present. That's unworkable.

I found a copy of the city's zoning regulations online. After having read through the "non-conforming structures" section of the zoning regulations I think I'm going to pass on this deal.

My (non-expert) reading of the zoning regulations informs me:

• It is technically correct that the house can be re-used as a residential property in a non-conforming way because it was built prior to the zoning change.

 Buuuuuutttt........

• Several provisions when taken together boil down to "you can't make the property less conforming than it already is." Well, there is a shed on site that had a business in it. So, I suspect that can't be re-used as a garage or a pole barn.
• The property can't be enlarged and continue to be used for a non-conforming use. For a bigger property that wouldn't be such a big deal, but it's only about 950 sq ft.
• There is slightly unclear verbage that may mean the property can't be rehabbed on a budget of more than 50% of the accessed value at the time the zoning regulations came into effect (whenever that was.) So, I think that means that I'd likely have to account for inflation between the time the zoning regulations were passed and the present day and comparing that to my rehab cost in inflation adjusted dollars.

Yeah, I think I'm going to pass on this deal.

Thanks @Ibrahim Hughes 

That's really useful. So, if the property is grandfathered it will be spelled out, probably in legalese, in a zoning letter. Is that understanding accurate? What, in your experience, is the application cost and turn-around time for a zoning letter? 

@Michael Phillips I'm sure it is, if it's occupied. People need housing to live. But, many forms of business don't need light industrial frontage. So, a building could easily sit vacant for a long time before a business tenant comes along.

That said, I wouldn't mind a mixed-use building in my rental portfolio with, say, a specialty grocery store on the ground-level and apartments above.

Okay, so if an email chain is not enough what exactly constitutes indisputable proof in a case like this? If I go into the zoning office and ask, what should I ask for? I'm really new at this. I want to be able to show my end buyer this documentation and be able to rest assured that all is well.

Also, I'm sorry you got stiffed @Martin Scherer because the counter guy was clueless and his boss was spineless. That stinks.

I've gotten a response from a Realtor regarding a yellow letter I sent his client. We've been playing telephone tag but finally got a chance to really discuss the property today. It's a small house (950 sq ft) on a respectable lot (2+ acres) in need of a full-gut rehab.

However, I just realized the area is zoned I-1 (light industrial) and is no longer residential.

When I questioned the Realtor about it he confirmed what I already knew. But, indicated that he was under the impression from the city that the property itself was grandfathered as residential as long as it was still standing.

Before I get this property under contract I want to confirm that his understanding is accurate. As the old proverb goes, doveryai, no proveryai trust, but verify. 

Is it enough to email the city zoning office and ask? Or, do I need a specific document from the zoning body as hard evidence property itself is grandfathered as residential inside the I-1 zone?

Thanks!

Hello,

I'm a wholesaler and I have some deals coming under contract in and near Enfield, CT. However, In order to do this "the right way" (tm) I need to get the property inspected and have 2-3 GC's bid on the rehab. I want my end buyers to know exactly what they're getting into. Herein lies the rub: I don't know any GC's in that area.

Do any of you have any suggestions? I need someone who can bid on projects that include complete gut jobs and (gasp!) mold remediation.

Thanks!

~Jeff

I feel I should chime in here and say that there are flat rate evictions Attorneys that will handle the entire eviction process for you, soup to nuts. I might suggest Googling "Flat Rate Eviction Attorney [your city, state]."

Let an expert handle it, you don't need the stress. 

~Jeff

Hi,

There is is a quick way to get that information.

This gives you the physical location and sets your criteria. Adjust these as your situation dictates:

• Go to http://www.listsource.com/
• Build a list of single family, duplex, triplex, and quads in your area of interest.
• Make sure to get both owner occupied and absentee owned.
• Make sure mailing address and property address are complete.

This gets you the cash buyers:

• Then, set the last sale date to 6 months in the past.
• Set the equity to 91-100% equity.

Presto, you have a cash buyers list. You may have to play with a few settings to get the list you want, but that's basically it. Mail them a letter letting them know you sell houses at steep discounts similar to the one they just bought on 123 Main St.

That's how a lot of people build their buyers list. In fact, I think @jvmccall covered this procedure on a recent podcast of his.

~Jeff