Fire damaged property

[Pandu Chimata]

Greetings team!

I am the process of exploring an opportunity to flip a fire damaged property. Have never dealt with this kind of properties. I tried to get some elementary education on flipping such projects.

So far, my limited conversations, provided me the following information.

1. City Fire department will have the information of the property and will determine the restoration process - rebuild or restore

2. Fire department will inspect the property at various stages to ensure the property safe to live

3. Depends on the 1st step, need to work with the city for the appropriate permits 

Can you folks - please add/comment more on this. Appreciated the input. 

[Ty Coutts]

Pandu Chimata, you're off to a great start! I'll throw in a few more things to consider:

Property Assessment:

Structural Engineer Evaluation: Before proceeding, hire a structural engineer to assess the extent of the damage. This evaluation will determine if the property's foundation and structural integrity are sound.

Insurance Assessment: Check if the property has insurance coverage for fire damage. The insurance company may cover some or all of the restoration costs.

Scope of Work and Budget:

Detailed Inspection: Get a comprehensive inspection to identify all areas of damage, including hidden issues like electrical, plumbing, and HVAC systems.

Cost Estimation: Obtain detailed cost estimates for the restoration or rebuilding process from licensed contractors experienced in fire-damaged properties.

Environmental Hazards:

Asbestos and Lead Testing: Older properties may contain asbestos or lead, which can become hazardous after a fire. Ensure the property is tested and, if necessary, remediated by professionals.

Permits and Code Compliance:

Building Codes: Ensure that the restoration or rebuild complies with current building codes and regulations. This might involve updating certain aspects of the property to meet modern standards.

Permit Acquisition: Obtain all necessary permits from the city, which may include demolition permits, building permits, electrical permits, and plumbing permits.

Restoration Process:

Debris Removal: Clear out all debris and damaged materials from the property. This step must be done carefully to avoid further damage.

Structural Repairs: Address any structural damage first, including the roof, walls, and foundation.

Systems Repair: Repair or replace electrical, plumbing, and HVAC systems as needed.

Interior Restoration: Once the structural and system repairs are complete, focus on restoring the interior, including insulation, drywall, flooring, and fixtures.

Safety and Health Concerns:

Air Quality: Ensure proper ventilation and air quality during and after the restoration process to remove smoke odors and contaminants.

Mold Remediation: Check for and address any mold growth, which can be a common issue in fire-damaged properties due to water used in firefighting.

Final Inspections:

City Inspections: Coordinate with the city for final inspections to ensure that the property is safe and habitable.

Fire Department Clearance: Obtain clearance from the Fire Department confirming that the property is safe to occupy.

I hope this helps, best of luck!

-Ty

[Jacob Sherman]

Best is to get a qualified contractor to go through the process at the least until passes the demo and reframing stage of the structure 

[Pandu Chimata]

Quote from @Ty Coutts:

Pandu Chimata, you're off to a great start! I'll throw in a few more things to consider:

Property Assessment:

Structural Engineer Evaluation: Before proceeding, hire a structural engineer to assess the extent of the damage. This evaluation will determine if the property's foundation and structural integrity are sound.

Insurance Assessment: Check if the property has insurance coverage for fire damage. The insurance company may cover some or all of the restoration costs.

Scope of Work and Budget:

Detailed Inspection: Get a comprehensive inspection to identify all areas of damage, including hidden issues like electrical, plumbing, and HVAC systems.

Cost Estimation: Obtain detailed cost estimates for the restoration or rebuilding process from licensed contractors experienced in fire-damaged properties.

Environmental Hazards:

Asbestos and Lead Testing: Older properties may contain asbestos or lead, which can become hazardous after a fire. Ensure the property is tested and, if necessary, remediated by professionals.

Permits and Code Compliance:

Building Codes: Ensure that the restoration or rebuild complies with current building codes and regulations. This might involve updating certain aspects of the property to meet modern standards.

Permit Acquisition: Obtain all necessary permits from the city, which may include demolition permits, building permits, electrical permits, and plumbing permits.

Restoration Process:

Debris Removal: Clear out all debris and damaged materials from the property. This step must be done carefully to avoid further damage.

Structural Repairs: Address any structural damage first, including the roof, walls, and foundation.

Systems Repair: Repair or replace electrical, plumbing, and HVAC systems as needed.

Interior Restoration: Once the structural and system repairs are complete, focus on restoring the interior, including insulation, drywall, flooring, and fixtures.

Safety and Health Concerns:

Air Quality: Ensure proper ventilation and air quality during and after the restoration process to remove smoke odors and contaminants.

Mold Remediation: Check for and address any mold growth, which can be a common issue in fire-damaged properties due to water used in firefighting.

Final Inspections:

City Inspections: Coordinate with the city for final inspections to ensure that the property is safe and habitable.

Fire Department Clearance: Obtain clearance from the Fire Department confirming that the property is safe to occupy.

I hope this helps, best of luck!

-Ty

 Thank you for the detailed information. 

One question - If the property is covered by the insurance, would they honor the claim even after the change of ownership?

[Pandu Chimata]

Quote from @Jacob Sherman:

Best is to get a qualified contractor to go through the process at the least until passes the demo and reframing stage of the structure 

 Thank you Jacob.

[Brendon K.]

One question - If the property is covered by the insurance, would they honor the claim even after the change of ownership?

The insurance should be contracted between the owner and the insurance company, not between the house and the company. If the previous owner does not transfer the policy to you, I don't believe they are liable for your home.

[Pandu Chimata]

Thank you for the clarification. Follow-up question - can a previous owner transfer the policy to me? Is that even possible?

[Bob Stevens]

Quote from @Pandu Chimata:

Greetings team!

I am the process of exploring an opportunity to flip a fire damaged property. Have never dealt with this kind of properties. I tried to get some elementary education on flipping such projects.

So far, my limited conversations, provided me the following information.

1. City Fire department will have the information of the property and will determine the restoration process - rebuild or restore

2. Fire department will inspect the property at various stages to ensure the property safe to live

3. Depends on the 1st step, need to work with the city for the appropriate permits 

Can you folks - please add/comment more on this. Appreciated the input. 

 This is your 1st deal/reno/ flip? If so, FLIP the contract to someone with experience. MOVE ON. You 100% do not want to be involved with this especially as a 1st . LA, I assume this is a 500k ++ project, again, move on. Learn then maybe tackle something like this. I have extensive experience will NOT touch fire damaged props. the building department will be up your butt. I have no interests in dealing with them, never have never will. Permits, inspections, and lots of paperwork. 

All the best 

[Pandu Chimata]

Good thing, this is not my first flip. This is my 7th purchase and 5th flip. I just put one property on escrow which was also in a very bad shape - strong smell with cat urine and I had to replace all drywall and existing flooring.

As I am waiting for my escrow to be closed, this came into my attention. At this time, I am researching. 

Submitted a request to get a fire report and also sent a request to city for all the citations they have on this house. I may or may not buy the property but I believe the information I gather will help to increase my awareness/knowledge. 

[Bob Stevens]

Quote from @Pandu Chimata:

Good thing, this is not my first flip. This is my 7th purchase and 5th flip. I just put one property on escrow which was also in a very bad shape - strong smell with cat urine and I had to replace all drywall and existing flooring.

As I am waiting for my escrow to be closed, this came into my attention. At this time, I am researching. 

Submitted a request to get a fire report and also sent a request to city for all the citations they have on this house. I may or may not buy the property but I believe the information I gather will help to increase my awareness/knowledge. 

 Massive difference between cat smell and fire damage. I would never deal with the city and want them up my butt. 

Good luck to you 

[Pandu Chimata]

Thank you Bob. 

[Dan H.]

In Oct 2019 two Of my units caught fire.  I had issues with the initial abatement contractor.  The worse part was I believed they $ucked in the 1st seek but did not fire them until week 12 on a 4 to 6 week abatement job.  Next abatement contractor was much better (not saying much) but still missed something.   So it was a terrible start that I have significant responsibility for the issue.

Just as abatement was finishing we entered Covid lockdown and a single contractor at a time working.  

it took 12 months and $360k. 

I recognize my poor handling of abatement contractor resulted in virtually no progress when COVID lockdowns went into effect.  The entire effort took way too long, took a lot of work, took a lot of money.  

I think that regular rehabs are much easier.  

Good luck

[Pandu Chimata]

Thank you Dan for sharing your experience.