Fire Damage, what to do?

Rehabbing, Fix and Flip, Rental Properties
1

Situation:

Large Home: 5 BR 4 BA 3,890 SQFT (REO, VA by OCWEN)

Price: $145,000 - ($270,000 ARV)

There was an electrical fire in the attic that didn’t cause much damage, but it’s obvious that there was a fire cause it burnt through the ceiling of one bedroom in a small area.

My question is, will a conventional lender loan on this property or will I have to find another alternative?

How would you get around this problem?

Thanks,
Brandon

2

if it burned thru the roof, then you have problem; otherwise, do not bring it up with the lender.

getting insurance could be tough…

3

Just a small area burned and it would only require about $5,500 to replace. It did however burn a whole in the ceiling of a bedroom on the second floor, about a 3 foot area. It did not actually burn through the roof!