Wholesale Flipping Fire Damage/Burnt Out Properties: Has Anyone?

[Daryl Webb]

I may have FINALLY found my dream REALTOR to work with After all of these years.!!!

On several of his lists that I have been looking over, he has some fire damage and burnt out multi-family homes THAT I KNOW I CAN GET FOR "PENNIES"....

In fact, there are far more out there in the Northern, NJ area that he can list. My question is, has anyone wholesaled or even fixed and flipped a fire damage/burnt out property? I haven't and would like to know is it worth trying for?..

It would be very nice to have financing on some of these properties to do the wholesale flip. 

What do some of you think?...

[Jason Hirko]

@Daryl Webb Sure, no problem. 

Purchase price: $96,000

Out of pocket Rehab expense: $15,000

Monthly cashflow (pre-reno): $2,500

Time to complete Rehab: 10 months

But keep in mind that there was no structural damage except a new roof section, and I paid my maintenance guys to do it when they had time, so I wasn't trying to get it done quickly, especially since it was still cash flowing, but I did put all the cash flow back into the rehab. And it was a dump, so even if it wasn't burned up, it probably needed the same amount of work - the fire just happened to scare most investors off.