Non conforming property

1 Reply

Not sure. I have a non-conforming Home in  Longview WA. One of the last alley houses. In fact I call it my BOGO deal because we bought 2 of them side by side. Separate lots. Both houses literally touch  the alley property line. You can hear the gravel churn while in your living room with each passing car. City has a code that if utilities are not on for a 12 month period they will never be able to be turned back on. in other words no occupancy for 12 months means it is no longer eligible to be occupied again. Both were in the worst condition imaginable. 

Because of these issues, we picked up both houses for the price of one. Flipped the worst one to pay for both. Then took the best one and fixed it up real nice and it now rents for 1,100/month. with about 20K into it. next we financed out to pull out 75K! (appraised at just over 100K)

took that and bought another, refinanced out of that one too. 

Not sure how you would measure that in terms of risk but it was enough to convince me to wipe out my 401K (pay taxes on it) and get it into more low end rentals.

Hope you have similar results,

Shawn

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