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Updated over 9 years ago,
Looking for ideas. Duplex burned down.
My friend owns one side of a duplex in Olathe, KS. Recently, there was a fire that burned down both sides of the duplex. My friend contacted his insurance company who has agreed to pay out $103k to rebuild his side of the duplex.
Plot twist: Owner of other side of the duplex owned the property outright and had no insurance.
I'm trying to think of options for my friend. First, so he can get the house rebuilt. Second, so he can get out of the house because he no longer lives there. He's out of state.
My first thought is to buy the other side's land and ruins for 50% or less of the land value. Take out a hard money loan and rebuild that side as well. Then, once it's all rebuilt, sell to an investor looking for a duplex.
Slightly different scenario would be to rebuild both sides as stated above, but with the view of rezoning afterwards and making it a single family home.
I think my friend needs to speak with a real estate attorney, but aside from that I'm looking for some insight.