I have recently come across a few properties that have had additions and modifications made to them that were not up to code and did not have the required permits either. I have noticed that a lot more of the bank properties in my prospect area are sitting for long periods of time with these unreolved issues. In fact, many areas will require that within a specific timeframe that the issues are resolved and meet code.
I have recently adjusted me approach a bit to look for more investors who are looking for more heavy duty rehabs and I have bulked up my team with contractos who are licensed to rectify these issues and can give me a clear understanding of the total expense to rectify these isseus and what is need to get in good favor with the local city again and be able to sell the property to someone else.
I have found that banks tend to not want to attempt these types of repairs, thus they are a lot more motivated to lower prices on these homes in order to reduce the time it is sitting on their books.
I gained additional knowledge and made strategic alliances with people in my target area that are very knowledgeable in the local codes. I have become quite familiar with how to look for code violations reported on properties in each area too.
I will investigate further if there seems to be a garage conversion to a room, a porch converted to a room, shotty construction or a change in exterior materials such as the facade as well as the foundation from what the rest of the property has. I have picked up on these buy seeing breaker boxes that are maxed our or seem to have new breakers added after the fact. Now, you will find that not all are issues, but in some cases these are at least red flags to investigate further.
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