Updated about 9 years ago on . Most recent reply
POS Violation Requirement
I am looking at a fix and flip in Shaker Heights, OH. The house is a gorgeous 1925 colonial just begging to be rehabbed. The numbers work out fine for a normal flip. 70% ARV is $154,000. I estimate repairs to be around $90K, and I can probably get the place for under $45K in its current condition. The problem is the city requires an itemized list of repairs with estimates of repair for each violation. 90% of the violations are things like peeling paint, windows and doors not working etc. I plan on replacing all of them anyway so most of the violations are moot. After the itemized estimation they require 150% of the repair costs to be put in escrow.
Has anyone dealt with a situation like this? How did you handle it? I really don't want to tie up more than $130K in this house, any chance the city will reconsider since I plan on a gut anyway?
I don't know who would buy this place or any place in Shaker Heights with these requirements!