Updated about 6 years ago on . Most recent reply
Estimating fire damage rehab.
Been wanting to get into fix and flip/ BRRRR investing and just saw a property that I think has some great potential for a BRRRR, but since I have no experience doing a rehab, I would like some input.
just found a 4plex that had a fire in one of the units which that unit is destroyed, while the other units just have smoke and water damage. They are asking $90k for the property. Older 4plex's have been going for around $180k while units built in 90's early 2000's have been in the $200-250k range.
anyone have any experience in rehabbing fire damage structures? What might I expect in rehab cost? Other than a basic remodel, what would I be replacing? Roof, electrical, drywall, plumbing, etc...?
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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.
Is the property in your area? If so, I'd be happy to help you with it.