Fire Damage, Would you Buy?

[Andrew Peters]

Hello all!!!

I am new to investing and I am reading David Greene’s book Buy, Rehab, Rent, Refinance. In the book he talks about analyzing deals to get practice. I came across a home with fire damage with a good amount of fire damage in a room or two and looked like smoke damage in the rest of the house.

What are your experiences whether buying or staying away? In these situations, what things usually make this a deal breaker? I believe ARV for this 1500 sq ft home would be around 65k.

Thank you!!!

[Kenneth Garrett]

@Andrew Peters

Fire jobs are not necessarily for the beginner.  In theory it’s same as a rehab, depending on the severity of the damage.  Code upgrades may be required even though the damage was limited to o my certain rooms.  Structural damage needs to evaluated for replacement of structural members.  Electrical, plumbing, etc needs to be evaluated for extent of damage. Might require replacement beyond what you see.  Hire a contractor and contact the city for what they expect to be done.