House Next Door Is Vacant And Has Fire Damage
I saw a single family today in a low to middle income neighborhood. Most of the houses in the area are well-maintainted. However, the house directly next to the one that I'm considering purchasing has fire damage.
Detached single family REO owned
Asking price: $32,000
Comps: $77,000 - $89,000
Repair Cost: $15,000
Goal: To purchase, rehab and resell
Should I pass on this property since the house next door has fire damage?
Yaisa
Why dont you try to wholesale it to another investor! Read my post on "Wholesaling."
I would also try to purchase the fire damaged house also!
Best Riches,
Jeffrey Adam
[addsig]
If your numbers are correct on this house you stand to make anywhere from $30,000.00-$42,000.00. If you can buy the fire damaged house cheap enough buy and rehab it at the same time. This will make both look better.
Yaisa,
You are faced with an opportunity to accomplish the ownership of two properties. One I admit is a little hot but give it time. Side by side. Interesting.
Go for both. If you are doing a rebab you will be able to reduce costs like crazy as you are doing both together.
Fire damages are fun, wait til you meet the termites. Please check and see what happened from the fire department. Always good to find the reason. Electrical, water heater whatever. Peg that down. Casual smoker lit a joint became disorientated and put the match out on somebodys nose. Whatever. You might try a buy out with an assignment of the insurance recovery to you. Takes a bit but learn it. Best one I ever saw was the Contractor that came in to repair and was of course financed in full part by the fire insurance. He made a deal to buy the property from the home owner whose naughty little wife had set the fire to cover the jump out of the window of her casual lover whose wrist alarm did not go off in time. His tender to the cuckhold husband was a secondary note. No payment for 8 months then int. only for three years and then a biggy ballon. All covered of course by the refinance of the future buyer.
Now is the moment. Negotiate there is nothing but profit in your future. Wanna buy a wrist alarm watch it works now! I found it on the lawn just below a window.
Lucius