Mold and asbestos
Hello all, My partners and I are looking at a short sale action of a property that has been flooded by a pipe that burst in the second floor bath while property was vacant. I inspected the property, and it is a mess. The first floor flooring, sub floor, and dry wall need to be replaced. The joist under the floor are all mold, furnace is trash, hot water heater gone, all new paint inside, woodwork. We've not had it inspected, but we assume the mold can be remediated without killing the deal, if we don't pay too much for this place.
The home is in a great area, and there seems to be decent upside. Starting bid is 90k, we expect $100k to $120k Reno costs, closing/realtor fees $22k and an approximate ARV of $340k.
If you've dealt with situations like this before I'd appreciate your advice.
Thanks,
- Paul
@anchorrealtyllc
Check to see if there are any restoration contractors that might want to partner in the deal with you. The margins in that type of construction are very high and many of the owners are into flipping and investing. Getting them on your team is not a bad thing. You may do better overall by partnering with one of them rather than running into unexpected issues after opening up a can of worms on a property with environmental issues. They often have to carry large crews with unpredictable work loads (emergency response) so they can keep their guys busy with your steady work in between disaster jobs.