Cost of bullet proofing a house?

[Amiris Brown]

So, there's this house that has been deeply discounted about $100,000 off its original listing price. Just last month there were 3 armed robberies next door to that house on a street with businesses. There have been muggings and rapes at knife point on that block in the past four months. I consider this too much of a war zone, but my partner insists to play the speculative game of appreciation as that area is slated for redevelopment very soon (it's in the process of gentrifying right now actually). I don't want to take the chance but he does, since a block over houses are still selling at $300K+. This would be a potential rental once it's fixed up a bit (it also needs work, but mostly cosmetic like refinishing the hardwood floors). However, we wouldn't be renting it out immediately instead we would live in it for 3 to 5 years. Which is why I'd want to bullet proof the property so to not worry about stray bullets fired at the businesses being held up next door. I'd like to put this in my cost analysis since my partner is claiming it's a good price, my argument has been just because the numbers seem good doesn't mean the socio-economic reality is good. If I can't convince him, I figured to rerun the numbers with all the repairs needed. Heck, maybe he is right and I'm wrong after all. I just want to make extra sure before we regret passing up this deal, which I'm tempted to move on from.

[Nathan Paisley]

Wow it's one thing to rent it out but to live there! Your most important investment is your life. You can't put a price tag on that. Sorry but I would find a new partner and invest in a better area. 

There is a reason it's priced so cheap!

[Amiris Brown]

Exactly what I said. I even brought up the value of our life too. We are on the same page here lol, @Nathan Paisley. I think what it is, is he is getting anxious about finding a good deal within the next 8 months. I keep telling him it will happen, and to just wait. The market value prices of these houses has him skeptical, as they usually are $300K on up. I'm currently targeting off-market home owners to try to land a deal that will never be sold cheaply on the MLS. This discounted property has been sitting on the MLS for 148 days lol and there is a reason for that, and I found out why by looking at the crime stats on that block and the surrounding blocks. Not a deal at all, even if it were free lol! That is my argument, but he's not seeing the logic in that argument lol.

[Jeanni Prescan]

I would run away from that deal as fast as my 2 big feet could take me.  There's no way to bullet proof yourself from any stray bullets that may miss the house and find your body.

[Greg Rutkowski]

You know that 100K discount, it would take that and more to bullet proof the house!

[Jim Adrian]

@Amiris Brown

No such thing a bullet proof,  but there is bullet resistant.  I have done a few project for the DoD that have required this type of protection.  In terms of residential it will be crazy expensive around $50 per sq for product only.  UL 752 defines the level of bullet protection based on what type of bullets you are trying to stop.  I would guess your are wanting the lowest level of protection like Level 1 (stops 9mm) or Level 2 (stops 357mag), If this is wood construction, the walls will need fiberglass mesh panel, basically Kevlar about 1/4" to 3/8" thick or you can use 1/8" to 5/16" sheet steel to clad the house.   All the glass in the house will need to be laminated system of glass and polycarbonate panels which is about 1" solid thick.  If you have 8" masonry walls then you need to grout full the wall so basically turning it into solid concrete wall.  And these products are not DYI either and typically require certified installers $$$. 

If its that good of deal then rent it out but I would not live in an area like this until things turn around.

Hope this helps and good luck!

Here are some links to check out!

http://www.armortex.com/

http://www.usbulletproofing.com/index.htm

[Nathan Paisley]

Great! Maybe check out sites like hubzu or hud where you can bid the price you would pay for it not what it's worth. Also check out expired listings or find an agent that understands RE investing.

Good luck and don't rush! :)

[Julie Marquez]

I bought a large sheet of bullet proof glass for a police counter and material cost was around $12,000. 

[Amiris Brown]

Thank you so much, @Jim Adrian. I will show him the analysis with the numbers that take into account such protection. This was exactly what I was looking for, so to look it all up and crunch the numbers accurately. I will also run the numbers as a rental, and see if we could afford this house with rent-ready repairs as an investment property prior to obtaining our own house.

On my lists as well, @Nathan Paisley. Thanks again!

[Amiris Brown]

Wow ... that is a lot for a sheet of glass @Julie Marquez. Good to know, thanks!

[Jason Hirko]

@Amiris Brown If I turned down every house with bullet holes in it, I'd be working a 9 to 5. However, I never go back in them after I do the initial walk-through (during daylight). Find a way to make it work as a rental with a PM who isn't afraid of the dark!

[Joshua D.]

I suppose you could pour an 8 inch concrete wall around the entire house up to the roof level and buy some 1" steel plating to back the door up.  you could prolly do that for 20k ish...  No windows and hope no bullets come down from above. 

The point is, as others have said.  This is NOT a house you want to buy if your goals are investment and passive income. 

[Jim Adrian]

@Julie Marquez  Glass is stupidly expensive!  I bet the glass was 2" thick and level 5 or better.

@Amiris Brown  Make a few calls on cost.  I bet my numbers are low.  Glass maybe around $100 per sf but it all depends on level of protection you want.

I have had project use level 1, 3, and 5.   I believe armored vehicles use level 4. 

[Amiris Brown]

With price drops over two years it feels like it would be difficult to even rent, but I'll look into it (on Zillow it goes back to 2014 when it was first listed after a flipper passed it off to a poor investor soul lol according to the county tax records ... really trying not to make the mistake they look like they did with this property if I choose to make it a rental instead, and now that investor has given up by putting it on the market with it continuing to drop in sale price. Really going to research this well before making any final decisions on it. Thanks everyone!

[Amiris Brown]

@Jason Hirko see my above post with screen capture of the price drop. I'm still looking into at what cost to fathom ever buying this even as an investment lol ... really I agree with people like @Jeanni Prescan regarding this specific property (that doesn't mean I will always run away from all crime infested areas though), but I'm just checking my gut feelings in the numbers on this one. My gut screams no deal even as a rental, lol but I might be wrong. Almost done ... brb.

[Amiris Brown]

Even if I got the sellers to sell it at $150,000 instead of $174,000 it would still loose money as a rental lol. As I'd have to put up with a 25% vacancy rate for the next 2 to 5 years in that location. This totally was screaming nope to me, and this settles it. While the comps show that I could charge $3,000/m in rent, those comps are not based on that specific block wich will sit vacant unless I cut the rental price to $2,500/m or less.

[Jeff B.]

AMAZING that you would even consider investing $0.10 on this thing as well as BETTING your life too!! There's too many other choices for REI with far less risk and drama.

Be sure to get $1,000,000 term life insurance :sigh:

[Brian J Peterson]

LOL (with all due respect), are you seriously considering moving into a "war-zone" as you put it, just so you can make some money in 5+ years?? In my opinion, no amount of money or POTENTIAL cash flow is worth a chance at being killed in your sleep.. Also, bullet proofing a house? Are you serious, do you really think there are companies out there doing such a thing, and that there would be enough people wanting their services in their limited general area they work to be profitable?? I think there are ways to make your walls more bullet resistant, but I promise you there's no such thing as a bullet-proof (no bullets can pass) house.. Even armored car companies can't guarantee the structure to remain strong and intact after certain caliber bullets are fired multiple times (like an assault rifle) at the same spot.. Don't you think that in 5+ years you could generate the same amount of POTENTIAL capital with other deals? I think you can easily do it, and who's to say that after this "gentrification" comes full circle that there will be enough people out there to want to move there knowing about it's violent past, regardless of how much improvement has happened in the area? I know myself personally, I'm staying out of war-zones and also staying out of areas that were once war zones, not worth the risk.. Good luck and I wish you the best!  

[Rick Wang]

cost prohibition to do a whole house in actual bullet resistant material. 1/4in armor hard plate will do. Figure about 100 to 150 a sq ft. will Dont forget the windows. Those are the most expensive pieces.

There is a reason why even rich people do safe rooms, not safe hhouses. 

You could live in the basement. Natural bullet resistance!

[Matthew A.]

Amiris, this thread is a joke right? I can't believe there are people out there that would actually even think about doing this.

Didn't you just post on another thread that spending $3,000 in your life right now was too much to pay for your yearly real estate license/fees?

Now you found a discounted house in an area where you will most likely be raped and killed, but will live in it for 3-5 years to possibly make money, even though it sounds like it will continue to be worth less than the toilet I pee in. 

Just tell us this is a joke, and we can all move on. 

Thanks,

Matt

[Amiris Brown]

@Brian J Peterson, well considering this is the DMV yes there are companies that specialize in bullet proofing vehicles and houses. After all, everyone in government has to reside here for parts of the year at some point lol.

[Brian J Peterson]

OK, so why haven't you contacted those companies for pricing quotes instead of asking a bunch of people who don't know much about that industry?? (with the exception of @Jim Adrian who's clearly the expert on this post) I'm just thinking the money involved with that type of set-up would eat away at any potential profit down the line, regardless of how much you get discounted now.. Obviously there's good reason they've reduced the price multiple times already, NOBODY wants to buy that property!! Either way, whatever you decide to do, good luck and stay safe!! 

[Amiris Brown]

@Matthew A. I never said $3K was too much, I said I had no money like that other than OPM. So please spare me the belittling, I can get $3K if I wanted to get my license after all. As you can read in this thread, I never considered this after reading the crime reports, but my partner keeps insisting it is a deal. I keep saying it's not. I'm here to essentially prove to him who is correct lol, so this isn't exactly a joke. Heck, a flipper or even as a buy-and-hold rental this house will not turn a profit unless it is sold for $50K in cash owned-out-right (I just got done crunching all the numbers, and the most is $50,000 it should sell for if someone isn't gullible). This is the fact I shall present to my partner.

[Amiris Brown]

@Brian J Peterson I just did that FYI ... after @Jim Adrian pointed me in the right direction.

[Brandon L.]

@Amiris Brown you say you don't want to take the risk- so don't take the risk. Let your partner go solo.

[Amiris Brown]

@Rick Wang good point!