Red tagged Property?!?!

[Scott Krause]

The property Im after had a small fire early this year and has a little bit of water damage with mold on thoughout alot of the drywalls. It also is on septic when it should be connected to the city system which is 800ft away from the hookup point. Would it be worth investing in such a property?

Its 3 beds 

2 baths 

1800 Square feet 

Im thinking the best way to deal with it would be to take it down to the frame and redo all the drywall and basically start almost fresh. 

The neighborhood is a good neighborhood full of $900,000 homes and its right nect to a high school. Their asking $400,000 

[Kenneth Garrett]

@Scott Krause

I would check with the city on sewer connections.  Many times when a building has been vacated for 6 months it requires you to bring everything up to code.  You are already doing that based on the rehab explained.  The sewer is a different story.  800 feet away is a long way.  Be aware if the sewer was brought this far and other people had it extended there sometimes is a recapture agreement or fee you would owe.

For example a building is required to bring in water or sewer to there property.  In doing so you pass 5 other properties who are not connected.  Since you paid to extend the line, you are entitled to recapture of the fees. If it cost an extra 100,000 to run the line past these other houses (5), they would owe in theory 20,000 each to you plus Interest possibly 8% a year.  This also could apply to you where people could owe you in the future.

Good Luck.