rjeep99, Home Buyer in San Diego, CA

should I buy a rental property with a bootleg studio? the bootleg is what makes it profitable. What are the risks?

Asked by rjeep99, San Diego, CA Wed Sep 5, 2012

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MaryAnn Morr…, Agent, San Diego, CA
Thu Sep 6, 2012
There are good answers below. I would also recommend checking with your insurance agent.. Structures without permits or illegal structures are not always insurable.
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David Inderm…, Agent, San Diego, CA
Wed Sep 5, 2012
I agree with Cory and Jerry for the most part. If a neighbor calls the neighborhood code compliance on you then you very well after inspected to bring back to original condition. I have advised client's in the past with similar situation to renegotiate price based on risk at hand. I hope this helps you.

Thank You,
David R. Indermill
Re/Max Hall of Fame CDPE
Re/Max La Jolla
cell 858-414-(LIST) 5478
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Cory La Scala, Agent, San Diego, CA
Wed Sep 5, 2012
Well, for starters you know the addition isn't permitted, so if anything happens to your tenant, your insurance may not cover it. And if they did, they wouldn't cover the negligence lawsuit.

There are unpermitted additions all over the county. This means you'll never know if a homeowner had a contractor do the work to code, or more likely, gathered some friends and relatives to do the work to save a lot of money.

Also, if this is living space, and you're planning on getting a loan, your lender will want it to at least look like it was done to code, but they could always end up not funding it in the end.
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Jerry Heard, Agent, San Diego, CA
Wed Sep 5, 2012
The risk is that the city/county could find out about it and make you tear it down if zoning does not allow for it. If zoning does allow it then you may have to bring it up to current code. It is a risky situation and I would give my client that advice and let them make up their own mind.
Is it worth the risk? Only you can answer that.

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