Fire Damage/refi question

[Fred Buechel]

Anyone dealt with fire damaged properties? I'm looking into one now but I cannot access the property until the seller's insurance settlement comes in..It's a 3/1 house with a brand new (undamaged) 1 car detached garage. If I can get it for next to nothing, do a lot of the gutting myself and pay contractors to renovate, I think I could be on the good end of this one. 

Here's the kicker...this is my first investment property, so it's a big undertaking.. I'm not sure of renovation costs, and I can't get in there right now to bring a contractor with me for estimates. I just see this could be a great one to start with..

I would be doing the BRRR method..Current asking price is $19,900..I have no clue what it would cost to renovate a 1000 sq ft 3/1 ranch w no basement.

Also, if ARV is $100k, and rentals are going for $1200-$1400, I would need repair costs to be around $30-$40k to really win with this one.

So I understand correctly, I would then refi and take the equity (in cash) out to pay off repair costs, have some left over to purchase my next property, and have a tenant into pay off the refi? Can someone correct me if I'm wrong on that?

Thank you!