Real Estate Investor · Huntington Beach, CA · Member since 2008 · 221 posts · 9 votes
We are looking at a bank owned fourplex. It is presently vacant and in pretty bad shape.
Question is, what kind of inspections is the city likely to require before we can rent again after repairs? We want to know if it is worth the risk in buying the place.
We are located in Huntington Beach, CA
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
15y
Is your agreement worded something like this: "Buyer is responsible for U&O (or Certificate of Occupancy)"?
Now, what follows assumes that the locality where this property is located performs inspections on change of possession.
That clause in your agreement means that you the buyer would be subjected to inspections BEFORE closing, rather than the seller getting such inspections performed (as would be customary where I am located); typically, code enforcement will issue a temporary or conditional certificate, with the expectations that you will undertake the repairs that they identify. So, if this occurs, you will know ahead of closing what repairs will be expected of you.
Real Estate Investor · Huntington Beach, CA · Member since 2008 · 221 posts · 9 votes
15y
We were recently looking at a fourplex. In city records, in the first 10 years after the building was built the owner had a certificate of occupancy issued several times. This seems strange, what does it mean?