Posted by Jerry Greer on August 29, 1999 at 18:32:29:
Lawrence, Since you don’t have the skills needed at this time to analyze these additions, I would flip this property. You don’t really need to know if the additions meet every code. As long as you buy it right you can let the rehabber check it out and see if they are ok. You might even consider bringing in a contractor and partnering up on this deal so that you can get more of an education on what to look for in this situation. If you intend to be a rehabber then these are important questions. If you intend to flip this property, I would simply get it under contract subject to a profesional inspection. For the money you spend on the inspection you will get a great education.
Good luck.
Jerry Greer
Rehabbing assistance. Room additions and conversions - Posted by Lawrence
Posted by Lawrence on August 29, 1999 at 17:24:26:
Hi all,
Yesterday I looked at a bank owned fixer that needs considerable work, a black-eye on a nice nieghborhood, just what the doctored ordered right. Well maybe.
My questions stems from the fact that this home has a hap-hazard room addition where the back patio was, and a two car garage converted into a studio apartment equiped with closet, kitchen sink, and a full bathroom.
How do I know if these “enterprising” additions were done correctly, ie. legally? If they are not up to specs, do I remove the room and put the garage back? Will the inspection/appraisal tell any specifics on this. Does this sort of thing lower my pool of rehab buyers to flip to? If I take on this project what do I do with these rooms?
Whether I flip or rehab and sell, these two things greatly affect my cost-repair-estimate which in turn affects my low-ball offer.
In a nutshell; What should I do with these rooms, how do they impact my calculations? Am I over-analyzing this?