How Do I Estimate The Cost to Completely Rebuild a Multifamily?

[Dan Herman]

There is a 7 unit I am interested in purchasing, but had fire damage and needs to be completely renovated besides the shell...how do I estimate the cost to do so? Is there someone in the town I can call to get a professional to give me an estimate?

Thank you for any advise!

[Jeremy VanDelinder]

I flip fire-damaged properties and own a fire damage restoration company. It can be a big undertaking, but there can be good profits in it IF the numbers are right and you have done your homework to know what you are getting into. Unless you are rather experienced with this type of damage, it may be hard for your to tell the extent of damage. The place to start is by asking the seller what the insurance company decision is—if they will share that info, that might tell you some of what you need to know.

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.

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.

By the way, I don't see in your profile where you are. What market are you in? Let me know if I can help with anything. I'm happy to look at pictures and give you some input.