I'm new to investing and am trying to run deals through the analyzer. I came across a house (3 Bed, 2 Bath, 1800 sq ft, 2 car garage, sun room, corner lot with a median neighborhood value of $195k.) The description says that it's a burn out house and is not livable. Being sold as is for $30k. Seems like an amazing deal! BUT...I don't know what a burnout house is. I can come up with the $30k but I'm estimating about 50K in reno costs and have no idea yet how to to obtain that money. I want to take the leap and go for it but with so many unanswered questions I feel stuck!
The picture (only 2) doesn’t show any burn damage and only shows exterior front and side views. The exterior appears to be in decent shape other than some landscaping that needs sprucing.
So I went to check out the house. Looks like the owner deliberately set it on fire to collect insurance. The outside looked decent (other than a couple broken windows and hole in the roof) but the inside was destroyed right down and including studs and rafters/trusses. House definitely not worth anything but the lot it sits on.