How to Find Code Violation Properties?
As a real estate investor, finding code violation properties can be a lucrative opportunity to purchase undervalued properties at a discounted price. However, it requires a thorough understanding of the process and the necessary steps to identify these properties. In this article, we will guide you on how to find code violation properties and what to do once you’ve identified one.
What are Code Violation Properties?
A code violation property is a property that has one or more outstanding code violations, which are non-compliant with local building codes, zoning regulations, or other municipal ordinances. These violations can range from minor issues, such as overgrown vegetation or peeling paint, to major problems, such as structural damage or lack of essential services like electricity or water.
Why Invest in Code Violation Properties?
Investing in code violation properties can be a smart move for several reasons:
- Discounted Prices: Code violation properties are often sold at a discounted price due to the need for repairs and renovations.
- Rental Income: Once the property is renovated, you can rent it out and generate passive income.
- Appreciation: The property’s value can appreciate significantly once the code violations are corrected.
- Tax Benefits: You may be eligible for tax deductions on the cost of repairs and renovations.
How to Find Code Violation Properties?
Finding code violation properties requires a combination of online research, on-site inspections, and networking with local authorities and real estate professionals. Here are some steps to follow:
- Online Research:
- Zillow: Use Zillow’s "Foreclosure Center" to search for properties with code violations.
- County Assessor’s Website: Visit your local county assessor’s website to search for properties with outstanding code violations.
- Municipal Website: Check your local municipality’s website for code violation lists or online maps.
- On-Site Inspections:
- Drive-By Inspections: Drive around neighborhoods and look for properties with visible code violations, such as overgrown vegetation or peeling paint.
- Property Walk-Ins: Schedule walk-ins with property owners or real estate agents to inspect properties in person.
- Networking:
- Local Authorities: Contact your local building department, code enforcement office, or planning department to inquire about code violation properties.
- Real Estate Agents: Network with local real estate agents who specialize in distressed properties or code violation properties.
- Homeowners Associations: Reach out to local homeowners associations to gather information about code violation properties in their neighborhoods.
Code Violation Property Search Criteria
When searching for code violation properties, consider the following criteria:
- Property Type: Single-family homes, apartments, commercial properties, or vacant land.
- Location: Neighborhoods with high concentrations of code violation properties, such as areas with low-income demographics or aging infrastructure.
- Price Range: Properties priced below market value or with significant discounts.
- Code Violations: Search for properties with specific code violations, such as structural damage, electrical issues, or environmental hazards.
What to Do Once You’ve Identified a Code Violation Property
Once you’ve identified a code violation property, follow these steps:
- Inspect the Property: Conduct a thorough inspection of the property to assess the extent of the code violations.
- Determine the Cost of Repairs: Estimate the cost of repairs and renovations needed to bring the property up to code.
- Negotiate with the Seller: Negotiate with the seller to purchase the property at a discounted price based on the cost of repairs.
- Secure Financing: Secure financing options that cater to code violation properties, such as hard money loans or private money lenders.
- Hire a Contractor: Hire a contractor to perform the necessary repairs and renovations to bring the property up to code.
Conclusion
Finding code violation properties requires a combination of online research, on-site inspections, and networking with local authorities and real estate professionals. By following these steps and considering the criteria outlined above, you can identify undervalued properties with significant potential for renovation and resale. Remember to inspect the property thoroughly, determine the cost of repairs, negotiate with the seller, secure financing, and hire a contractor to bring the property up to code. With the right approach, investing in code violation properties can be a lucrative opportunity for real estate investors.
Code Violation Property Search Criteria Table
| Criteria | Description |
|---|---|
| Property Type | Single-family homes, apartments, commercial properties, or vacant land |
| Location | Neighborhoods with high concentrations of code violation properties |
| Price Range | Properties priced below market value or with significant discounts |
| Code Violations | Search for properties with specific code violations, such as structural damage, electrical issues, or environmental hazards |
Code Violation Property Search Websites
- Zillow’s Foreclosure Center
- County Assessor’s Website
- Municipal Website
- RealtyTrac
- Hubzu
- Auction.com
Code Violation Property Financing Options
- Hard Money Loans
- Private Money Lenders
- Fix-and-Flip Loans
- Renovation Loans
- FHA 203(k) Loans
