Fire damaged houses for a new investor

2 Replies

As the title states, I have house that is in my neighborhood that has been sitting for at least 6 months now vacant because there was a fire in the kitchen. I assume that the fire department did more damage than the actual fire but I have not actually seen the damage. 

A little background on the house from what neighbors have told me. The house comps are around $160k (my house is very similar in size and layout). I live in Wichita Kansas so $160k is a pretty nice and big house here. The house has always been bank owned and the bank just rents the house out. The house is also kind of an ugly white painted house with light pink trim. I figured painting the exterior of the home would make it look 100 times better as well.

Im sure I am probably leaving info out, but I have just been seeing this house sit empty and was wondering if there is any opportunity here. I have done some research online and have seen that many investors are scared away from fire damaged houses so I figured I would mention this on here and see what everyone thinks.

I have never purchased a fire damaged property, but saw them all them time in Detroit during the year I lived there. Depending on the damages, there could be extensive work involved replacing all the damaged framework, electrical, plumbing, etc. as well as getting the smell out. Bid low, make sure you secure the property from trespassers and get any inspections needed along the way. Take pictures along the way, not necessarily for the new buyers but for your own satisfaction and maybe for insurance purposes.

The nice thing about it is that it is actually the house directly next door to my primary residence, and in a very nice neighborhood so any trespassing/vandalism would definitely be minimized. But that is what I was thinking if I can get ahold of the property low enough Id be in good shape. The house is 8-9 years old and has always been bank owned, so I am wondering how badly they would let it go for a decent price.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you