Buying A Fire Damage House In Philly

[Shawn Ryan]

Hey guys looking for some info. I got a call from a homeowner looking to sell their property that had a fire recently. Im going to check it out this week. I own a few properties at this point but never purchased a house that had fire damage. The house is a philly row home. The homeowners insurance was lapsed at time of fire so they have no coverage.  According to the owner, L&I is going to start fining them 2k/day starting in September if they don't fix the hole in the roof and the boarded up openings etc. A few questions I have are:

- If I purchase the house cash, what will I have to do to satisfy L&I, and is there a time frame as to how soon repairs would need to be made?

- Will hard money lenders lend on a project like this?

- Is there a way to delay the L&I fines for the existing owner so she doesn't get burried in fines?

- Is there anything that is different in the home buying process I should know about with a fire damage house?

I would love some advice from someone that has gone through an experience like this or has experience dealing with L&I, etc. Any advice helps. Thanks in advance!

[Jeremy VanDelinder]

I flip fire-damaged properties and own a fire damage restoration company. It can be a big undertaking, although there can be profit in it IF the numbers are right and IF you have done your homework to know what you are getting into (both big “IFs”). Unless you are rather experienced with this type of damage, it may be hard for your to tell the extent of damage. 

The challenge with fire damaged properties is that there is more than meets the eye. For example, often fire damage is water damage--they put the red stuff out with wet stuff. Unmitigated water damage becomes mold damage and and there is the potential of extensive smoke damage in the same airspace. So even elements that don’t appear damaged can be contaminated.

I would recommend you find a fire restoration company/contractor to walk the property with you and give you a good understanding as to what needs to be done. There are many things that could be overlooked as part of the renovation on fire-damaged properties.