Yeah it's a big quesiton but I was just looking for general answers. Then again the general answers might not be of any help. Here are the specifics -
2 story REO colonial that vandals broke into and started a fire in basement. The fire damage is concentrated in one area which we were planning on gutting. The kitchen was right above the fire and suffered the most out of all of the rooms on the first floor. There is lots of smoke/heat damage. We planned on gutting and replacing everything.
The second floor has only smoke damage and ugly wallpaper that we will remove. Hopefully the soot will come off with it.
All the floors have 3/8 hardwood over plywood. The hardwood was protected by ugly carpet that got trashed in the fire. All of the windows were broken out by the fire department and are now covered by plywood.
As far as water damage we really couldn't see any. It has been a while since the fire but we still couldn't see of feel any moisture. The basement was a little damp but not that bad.
Talked to a fire clean up guy and he said they remove anything that is charred and clean the soot with special chemical sponges and then coat everything with Kilz.
We bid on the place quite low so I don't think we will get it but it was a good learning experience to go out there.
Thanks for the reply.
Obviously everything depends on how much damage there is, BUT:
Fire Damaged houses can be huge cash cows. The number of people who will deal with them is very, very low. And with good reason, because you can really get burnt by one (I make myself laugh). This makes the competition almost non-existent.
A lot of what you see in a fire damged house can be cosmetic and not structural.
I agree they are cash cows, just make sure a non smoker goes in he house to test the smell. If the buyer smells smoke they instinctively get leary about buying. Also worse case scenario you can get an ozonator that will destroy the smells, expensive but left overnight will knock out anything.
You can make a nice profit from fire damaged homes, especially since many people don't want to touch them. If the comps are really good in that area, then maybe it would be a good profit for you, taking into consideration of how much cost it would be to repair and how much you will be purchasing it for. Basically, I would think you can offer them 70% below the market and probably the bank would be happy to get that from you. Hence, you might make out good.
If you need to keep insurance on the property while you are rehabbing it, I'd make sure to touch base w/ your insurance agent, and disclose the fire damage to him/her...
I agree. I have a fire damage I am thinking of getting for taxes for 15K, it needs about 40K to bring it new. I can sell it at 70%LTV at 105K. Not a bad deal at all
The only one I had was a rental. My insurance paid and recommend I strip down to studs. Even paid to replace tubs, toliet and panel box, AC system. They said they will all hold the smell and this was just a small fire in a recliner chair when tenat was home. Still a lot of smoke damage. The insurance company was great. I am a contractor but did not have any fire damage experience. I estimated damage at 2K they estimated and paid 40K after all was done for a small rancher.
That is one huge question. How much fire? how much water? smoke and oder?
Try to be more specific with a question.
I will give you this, If it's totaled and you purchase for less than the lot value including removal and you like new construction you shoud be OK
Yeah it's a big quesiton but I was just looking for general answers. Then again the general answers might not be of any help. Here are the specifics -
2 story REO colonial that vandals broke into and started a fire in basement. The fire damage is concentrated in one area which we were planning on gutting. The kitchen was right above the fire and suffered the most out of all of the rooms on the first floor. There is lots of smoke/heat damage. We planned on gutting and replacing everything.
The second floor has only smoke damage and ugly wallpaper that we will remove. Hopefully the soot will come off with it.
All the floors have 3/8 hardwood over plywood. The hardwood was protected by ugly carpet that got trashed in the fire. All of the windows were broken out by the fire department and are now covered by plywood.
As far as water damage we really couldn't see any. It has been a while since the fire but we still couldn't see of feel any moisture. The basement was a little damp but not that bad.
Talked to a fire clean up guy and he said they remove anything that is charred and clean the soot with special chemical sponges and then coat everything with Kilz.
We bid on the place quite low so I don't think we will get it but it was a good learning experience to go out there.
Thanks for the reply.
Hey,
Obviously everything depends on how much damage there is, BUT:
Fire Damaged houses can be huge cash cows. The number of people who will deal with them is very, very low. And with good reason, because you can really get burnt by one (I make myself laugh). This makes the competition almost non-existent.
A lot of what you see in a fire damged house can be cosmetic and not structural.
Good luck!
I agree they are cash cows, just make sure a non smoker goes in he house to test the smell. If the buyer smells smoke they instinctively get leary about buying. Also worse case scenario you can get an ozonator that will destroy the smells, expensive but left overnight will knock out anything.
Good Luck,
Kyle
You can make a nice profit from fire damaged homes, especially since many people don't want to touch them. If the comps are really good in that area, then maybe it would be a good profit for you, taking into consideration of how much cost it would be to repair and how much you will be purchasing it for. Basically, I would think you can offer them 70% below the market and probably the bank would be happy to get that from you. Hence, you might make out good.
Tanya
If you need to keep insurance on the property while you are rehabbing it, I'd make sure to touch base w/ your insurance agent, and disclose the fire damage to him/her...
I agree. I have a fire damage I am thinking of getting for taxes for 15K, it needs about 40K to bring it new. I can sell it at 70%LTV at 105K. Not a bad deal at all
Benny
[addsig]
The only one I had was a rental. My insurance paid and recommend I strip down to studs. Even paid to replace tubs, toliet and panel box, AC system. They said they will all hold the smell and this was just a small fire in a recliner chair when tenat was home. Still a lot of smoke damage. The insurance company was great. I am a contractor but did not have any fire damage experience. I estimated damage at 2K they estimated and paid 40K after all was done for a small rancher.