buying a burnt out property
Hello, as a newer investor in the DC area, I need some advice on a totally burned out property. Getting postcards ready to mail to 15 homeowners out of about 40 properties. My plan is to birddog some/ wholesale others. I'm still compiling my wholesaling/ buyer/investor lists. Prop. Description: 2 story, br. row, w/attic, eng. basement, 3br 1.5 baths I didn't see the rear, or inside damage. It's an inside row house so I'm hoping that the structure is still sound. All the front side openings were covered with plywood and it probably needs a total rehab. It's in a neighborhood that is currently being renovated. $335k - $350k arv last sale 2007 = $350k Depending on the level of rehab, $400k I have an investor/with construction co. as a possible buyer. My questions; Would the fire insurance have paid a decent portion of the remaining mortgage balance off? whats the deal structure? What do I offer for the property? Thanks in advance.
Most Popular Reply
Just my opinion here. If you're a new real estate investor, I hope you have some construction experience.
You need to know what you're doing with burn outs and more importantly, the people you hire to do the work better know what they are doing.
My advice is to start with a small project. Look for cosmetic flips, even if the margins are smaller, your level of risk is also very attractive.