Property destroyed - what to do next ?

[Christophe Noualhat]

Hi everyone ! 

Out of state / out of country investor here... 

I have (had ?) a rental property in Toledo, one month ago a fire broke out in the house's first floor, tenants been evacuated and house boarded up. The insurance will pay for the damages but as an out of country investor I do not have the time, energy or confidence to repair the rental.

How can I estimate how much is worth the land + house to repair on it and how can I find a buyer who has the resources and willingness to flip it ? 

Thanks for your guidance !

[Jay Hinrichs]

Quote from @Darius Ogloza:

A lot will depend on WHERE in Toledo the property is located and how bad was the fire.  Assuming the building was essentially destroyed, building costs likely run about $100 per square foot so that a 1,200 square foot home costs about $120,000 to build.  If you are in a part of Toledo where houses routinely sell for $50K or less, you will naturally find few buyers willing to pay anything as there is no incentive to rebuild.  You are also likely to find that the land in those neighborhoods is essentially worthless (or has a negative cash value insofar as the owner must continue to pay taxes on it).  The land bank may be your best bet.   If you are in one of the nicer suburbs, you can probably recover something of value form a sale.  

 building cost these days are closer to 150 a foot in most markets .. and this is the risk to properties that trade for way less than replacement costs if you have a total loss your ONLY remedy will be whatever you get from insurance. 

land can  and does have negative value in all these areas for the economic reasons described above.