Fire damaged house in Pittsburgh

[Norm Macleod]

Hi All

Unfortunately one of my rental homes in Pittsburgh suffered a fire in Sept. Tenants got out ok.

It is a 1476 sf 4 bd 1 ba.

Wondering what might be the best route to take to sell this. My property manager in Pittsburgh says there are there are specialized investors/contractors who take this type of work on.

I am on the west coast and unfortunately do not have any photos of current damage nor estimates for repairs.

Insurance has already paid out but I'm not interested in repairing. Thinking BP is a good start for potential rehabbers.

Should I post in the classifieds? Are there any investor groups in Pittsburgh to reach out to?

If theres no interest or repairs are too extensive I’ll obviously have no choice but to mow it down, but figured I’d see if I can recoup anything before doing so.

Thanks for the help

[Jeremy Pace]

@Norm Macleod in Pittsburgh, the only thing that matters is the price.  If you're trying to sell it for too much money, no one will buy it (unless by some magic you luck out and run into one of those unicorn morons who still has money and doesn't know any better).

You know how much it should cost to repair, it's right there in your claim paperwork.  So look at what your estimation of the pre-fire value, reduce that number 30%, and then subtract the repair amount from what's left.  If that number is above zero, you might get some $$ B-)

If not, @Josh Caldwell of the Pittsburgh REIA, can help you find someone to buy it for $1, dream deal right there.

@Jeremy Lee the core of the flipper interest is going to revolve around price.

Fun notes and exceptions: 

If you only have stated value coverage, and not replacement cost coverage, this could very easily blow up in your face, particularly if you owe a lot of money on the property.  If you have a bank mortgage, your bank is likely listed as an additionally insured, and if you're just gonna let the house sit, they are DEFINITELY going to want/get their owed money (but the good news is that they usually insist on better coverage, so you won't get hosed on the payout).

It's a little difficult to explain in written text, but if you have stated value coverage you won't get the $$ you think you will, your coverage is essentially adjusted as a ratio of your stated value and the replacement cost, which ends up dramatically reduces claim payouts in these cases.