Posted by SKI on May 08, 2006 at 20:50:15:
I bought a crack house about 4 yrs. ago. I paid 23k cash. Put about 5k into rehab (did all the work myself). Code enforcement paid me a visit just about the time the rehab was done. Told me that I needed to pull permits for the work completed. I was liable for about 3k in fees and fines. The chief inspector stopped by the next day and saw the work I had done on the place. He told me that I was liable for about 3k in fines and fees. Looked over my work and said on his way out the door you have done the community a great service because he had been at this place once a week for the past 2 yrs. Told me to have a nice day and again “thanke from all of us downtown”.
condemned house - Posted by brian_wa
Posted by brian_wa on May 04, 2006 at 17:59:22:
An investor contacted me about a meth-lab house that he would like to flip. I understand it may cost around 6k to get it cleaned. However, I’m afraid of the stigma around a meth-lab house and fear that I may not be able to sell it at the full value even after the cleanup. House doesn’t need much fix-up. Any idea how much one should offer on something like this?
Thank you,
Brian
Re: condemned house - Posted by Killer Joe
Posted by Killer Joe on May 06, 2006 at 18:49:08:
brian,
As far out as Elizabeths’ post might seem at first reading, it is not at all far fetched. In 1993 my partner and I invited one of our CA State senators, who was the chairman of the committee responsible in the area of law we were dealing in, to come and speak at a function we put on. We comped him for his travel from Sacramento to Los Angeles as well as putting him up in a hotel for the night. No fees to him. He was more than happy to accomadate us, and his presence added a great deal of credibility to our efforts. It may amaze you how easily you can pull this off.
As far as the drug house is concerned, I did one of these last year. It was the biggest blight in the neighborhood and I had to do almost everything but put a roof on (that had been recently done due to a fire in the garage) to bring that property back to neighborhood standards. When I sold it it set a record price for 3/1 homes in that area, and the neighbors came by to thank me for what I did with that house.
Just do the numbers like you normally do and include additional funds for remediation if need be, and lock this puppy up. If I was your competition I wouldn’t hesitate to jump on this. You shouldn’t either. HTH
KJ