Second possible purchase, Deal or No Deal?

[Jason Brubaker]

I'm a long-term buy and hold guy. I bought a triplex about three years ago which was one of the smartest moves I have ever made. It was almost a turn-key and has increased in value significantly (thank you path of progress). I am looking to buy more deals going that direction until I supersede my W2 income by approx 2X.

Out of dumb luck/keeping my nose to the grind a 3bd 1bth (off market) fell into my lap I am looking at today. It has fire damage but structurally sound, and electrical damage from said fire. Seller will will carry the note, no interest, and is asking half the price of other homes in the area. Location is Oregon Portland-Metro. I am floored by all of this, what are the biggest pitfalls I need to keep my rose-tinted lenses open to seeing?

[Jeremy VanDelinder]

I flip fire-damaged properties and own a fire damage restoration company. It can be a big undertaking, but there can be good profits in it IF the numbers are right and you have done your homework to know what you are getting into. Unless you are rather experienced with this type of damage, it may be hard for your to tell the extent of damage. The place to start is by asking the seller what the insurance company decision is—if they will share that info, that might tell you some of what you need to know.

The challenge with fire damaged properties is that there is more than meets the eye. For example, often fire damage is water damage--they put the red stuff out with wet stuff. Unmitigated water damage becomes mold damage and and there is the potential of extensive smoke damage in the same airspace.

I would recommend you find a fire restoration company/contractor to walk the property with you and give you a good understanding as to what needs to be done. There are many things that could be overlooked as part of the renovation on fire-damaged properties.

If you want me to look at pictures and/or answer any questions I'm happy to help in any way I can.