has anyone done any condemned /fire damaged properties, if so do i shy away from those or should i see what happens… I was so excited on getting my first deal signed up i didn’t care what was going on. Now i’ve had time to think and evaluate, i’m starting to think it is a waist of time…
THE FRONT OF HOUSE DOESN’T LOOK BURNED, THE HOUSE LOOKS LIKE IT CAN BE SAVED O IT IS SCHEDULED TO BE DEMOED IN A COUPLE MONTHS…
A fire damaged home is not particularly different to a rehabber than any other home in need of extensive repairs. The rehabber will need a detailed review of the required repair and estimates of repair costs. The smart rehabbers I am familiar with would want to personally inspect and develop their own estimates.
I purchased a fire damaged town house for my first deal directly from the owners. It turned out the repairs from 25 years of no maintenance cost more than repairing the fire damage.
Fire damage can cost a surprisingly large amount. Something that visually looks minor can turn out to be a huge project if you don’t have enough experience to know what you are looking at.
I suspect that 7K is the value of the lot and you got the house for free.
The seller says that 1 bedroom was burned? You don’t know for sure? Haven’t you gone to look at this house?
How are you going to pay for the $20K repair bill and all the holding costs until you sell it? A hard money lender? Good luck. Unsecured credit cards? Most likely.
Why does 1 fire damaged bedroom require it’s demolition? It sounds more serious. Contact the city engineering dept. to clarify this.
Your exit strategy is not wholesaling b/c no one’s going to buy a $7K fire damaged house. Your exit strategy is going to be demolishing it and selling it as vacant land, so find out what serviced vacant land is worth. Try giving your local fire department a call to see if they’ll burn it down for free as a practice training house for new recruits and then get a quote on debris removal and fill. If your demo brings the price to more than it’s worth as comparable vacant land in that neighbourhood, I wouldn’t touch it.
Don’t worry about the damage. If you plan on getting in and out, and not doing the repairs yourself, turn that bad boy over to somebody that whats a super cheap deal. Go even lower once you have a buyer lined up for it. The seller might take the bait, and you’ve just created a couple extra thousand in your pocket.