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Updated almost 2 years ago on . Most recent reply

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Kevin G.
  • Investor
  • Bay Area, CA
41
Votes |
66
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Would you flip a house with interior fire damage?

Kevin G.
  • Investor
  • Bay Area, CA
Posted

Currently, my business partner and I are looking to put an offer on a single-family home for a house flip. The house is listed for $230k, and we plan to offer $235k. The potential after-repair value (ARV) for the property is estimated to be $440k. Based on our viewing of the property, we estimate rehab costs to be around $90-100k, but we anticipate that it may end up costing more. The main fire damage was contained to the living room, and the fire department removed the drywall from the ceilings but otherwise, everything seems to be reparable.

We plan on using a hard money lender for the deal, which funds up to 75% LTV of the ARV. However, if they do not, we have an additional $30k cash reserves as a buffer.

Would you consider this deal? Additionally, would you be willing to flip a house with interior fire damage?

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18,207
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Chris Seveney
  • Investor
  • Virginia
15,645
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18,207
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Chris Seveney
  • Investor
  • Virginia
ModeratorReplied

@Kevin G.

We estimate but it may cost more?

How much more? Did you get a contractor and an engineer to review the damage to see what is still salvageable?

These are questions you will need to answer for the HML

  • Chris Seveney
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7e investments
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