🖐🖐Please share your advice! Buying first house to rehab

[Justin Goodin]

Looking to create an LLC and buy my first property to renovate and then rent out of possibly sell. (BRRRR)This house is listed for 100k, 4bd, 4 bath. It is in an extremely high and up and coming area. Other house on the same street and neighbors are selling for 300k and 400k.

This house has fire damage! When I know it will need a complete rehab do I waste time getting an inspection?

When I go look at the house with my realtor should I meet a contractor there too? Or how can I get an estimate of the total cost to rehab?

It will need a complete rehab. I do have experience in real estate but not flipping. Tell me some basics of what I should know or do! 

Thank you.  

[Jeremy VanDelinder]

I flip fire-damaged properties and own a fire damage restoration company. It can be a big undertaking. Unless you are rather experienced with this type of damage, it may be hard for your to tell the extent of damage. The place to start is by asking them what the insurance company decision is--that might tell you some of what you need to know.

Beyond that, I would suggest getting an experienced restoration company to look at it and give you a run-down on what it will need. There are many things that could be overlooked as part of the renovation on fire-damaged properties. 

As with any investment) the numbers have to be right and you have to do a lot of homework to know what you are getting into. The challenge with fire damaged properties if you have never done one is that there is more than meets the eye. For example, often fire damage is water damage--they put the red stuff out with wet stuff. Furthermore, there is the potential of extensive smoke damage in the same airspace.

Find a fire restoration company/contractor to walk the property with you and give you a good understanding as to what needs to be done.

Lastly, I would not be too quick to disregard @Mark Fries ‘ advice. Just because it is a good opportunity, doesn’t mean it is the right opportunity FOR YOU. When asked for me advice, I steer people away from Fire Damage for their first flip. I quoted a job last month that was around $150k in Damage and the flipper thought it going to cost $75k!!! A job like this can go badly quickly.

I’d be happy to help if I can. Let me know.