Fire 🔥 Damaged Rehab ....

[Sean Tippens]

Looking into a property that is brick single family home, roof intact with significant fire damage. The property will require a complete gut and reno including hvac and windows. If the property is being sold for just the value of the lot.....what should I be concerned about regarding the reno since there has been significant fire damage? What are your thought on purchasing properties with fire damage? Issues/pitfalls???

*The property does have an unground pool (condition/function unknown)

No garage / has carport

Cinder block backyard fence

*lot value $45,000

*ARV $200,000-220,000 (estimate)

[Jeremy VanDelinder]

I flip fire-damaged properties and own a fire damage restoration company. It can be a big undertaking, but there can be good profits in it IF the numbers are right and you have done your homework to know what you are getting into. 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 the seller what the insurance company decision is—if they will share that info, that might tell you some of what you need to know.

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. Unmitigated water damage becomes mold damage and and there is the potential of extensive smoke damage in the same airspace.

I would recommend you 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. There are many things that could be overlooked as part of the renovation on fire-damaged properties.

I'd be happy to look at pictures and answer any other questions you may have. Keep in touch, let me know if I can help and good luck!