All Forum Posts by: Alexander Hish

No, bringing items up to code are usually no problem as long as you account for the expense. You just have to figure if you plan to renovate something, you are required to bring that particular item to code. 

You can call your county and have a talk with the permit office and also your contractors to get a better idea . They would be a much better source of information as these small details are different depending on location and they change often.

Electric panel typically need replaced if they are the fuse style and you make any changes to the wiring in the home. You can google fuse box and breaker box and immediately be able to identify the two. An electrician will be able to explain much better when you can get away with leaving old fuse type panels and wiring. 

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The things that can get you are making items up to code. For example if you renovate the kitchen in my state you are required to run individual circuits to each of the appliances. You can't run new circuits on the old fuse style electric services. So now your kitchen remodel turned into an entirely new electric service with breakers as well as those new circuits run which may or may not require ripping out drywall. In addition depending on the wires already in the home you may be required to replace all the wiring if the service is replaced. The older the home, the more out of date it can be.

This is very dependent on your area. This is not a problem if you don't ever sell the property, but if you do these items may come up on the inspection and scare away buyers. You will not be able to pull permits for work that is not up to code.

Will, Thank you for your comment and correction. While most wholesaling activities are illegal my understanding was that in this use case it was not, as the unlicensed persons was not actually advertising the property on public communications. I was speaking on my basic understanding of Illinois law but it appears even that data is now incorrect as of August as the exchange of contracts between parties has been added to the list of licence requiring practices. 

It's much easier to make 10,000 a year more than to try and cut out 10,000 off your current living expenses. I always see people say cut spending cut spending cut spending. Increasing cash flow is much more important than saving, unless you have extravagant spending habits.

You can cut Starbucks out for a year and save $1000 or you can mow 20 lawns. Whats easier?

The person finding the property should put it under contract like a normal wholesaler with an assignment clause. They then transfer that contract to a third party, which would be you. 

Commercializing the shooting range. Paint ball course. Boat storage for the nearby lake. Seasonally a Halloween haunted house/forest.  All low capital investments that could provide added income. 

How large is your lot? How much is it for an empty lot? I would venture to guess the amount of depreciation your current SFH will get when the lot is cut in half and it becomes a duplex is more than the cost of buying a new lot. Additionally since this is not a "new" duplex the cost savings associated with contractors only needing to be on one job-site is nullified.

With only 5000 in liquid savings I would look to increase cash flow and savings before undertaking a new construction. You don't give a lot of details on your land. Next too a developing city? Middle of timber? Need more details on the land as there are a lot of things you could do to create another form of income. Shooting range, storage facilities, rent to businesses or a farmer etc,.

Run the numbers and make an offer that makes sense financially. Their asking price is irrelevant to you.