All Forum Posts by: Jee Lee

@David Avery Thank you!

I went down a rabbit hole today and got more information from my county but the info may vary from county to county. They don't need record of the conversion and no permit is needed for the type of work we are looking to do. The records will get updated on the next sale. It'll be up to the buyer's underwriting team to review the appraisal and confirm the number of bedrooms/bathroom. My county only reports on square footage so that's the only thing the underwriting team will likely match up. 

We recently closed off one doorway in an old dining room but now I'm wondering if we should have pulled a permit to do this? The home was a 3 bedroom and we converted it to a 4 bedroom. We did not mess with anything structural or electrical. The room has two windows with a vent for AC/Heat. Was this supposed to be permitted? 

The issue we are running into is listing this as a 4 bedroom home for rent but don't know how to update county records that it is now a 4 bedroom. Zillow does not allow the listing to be updated to a 4 bedroom. They pointed me to my agent but my agent can't update it for a past sale. 

Thank you for all of your feedback. I like the idea of running all of my numbers at more conservative numbers. I reran all of the numbers and it's still a profitable home but it may be a little too close for comfort for me. 

@Whitney Hutten Really appreciate the insight! Thank you!

@Jason Wray Thank you for your response. Yes, I'm paying cash and this will be for an investment property. The seller has been very vocal that she doesn't like how I'm having "all of these people" coming to her home. We had a general inspector, roofer, termite inspector, and contractor come out. She threatened to just take one of the other cash offers so I'm afraid to try to negotiate the price down. The numbers still work at the $150,000 price from a cash flow perspective but I don't want to overpay. 

I found lenders that will do between 70-80% ARV at 6 months and I figured I'd have to leave some money in the deal but I'm concerned what the appraisal will look like in 6 months if this one came in lower than expected. I'm leaning towards proceeding with the deal.

Need some assistance. I have a home under contract that has significant water damage from a bad roof and the home hasn't been updated in decades. The appraisal came in for $20,000 less than the asking price. Is that normal since the home needs significant updating?

The "deals" in my area (St. Petersburg, FL) are selling for over asking price. The seller has said that people are knocking on her door and offering her cash to close immediately (my offer is also cash) so I'm afraid to lose the deal if I try to negotiate the price down.

Offer price - $150,000

Appraisal - $130,000

Rehab - $50,000 (Fix roof, replace ceilings throughout home, update bathrooms, increase from 3 to 4 bedrooms, knock down some walls, update kitchen)

ARV - $250,000