Purchasing a House With Fire Damage

[Jon B.]

I am thinking of making an all-cash offer to purchase a SFR with existing fire damage in the kitchen at a price well below market value The property is in otherwise solid condition and in a great neighborhood. I plan on rehabbing the entire property to BRRRR or flip it. What are the considerations I should be aware of in purchasing a property with existing fire damage? Are there any special protocols in repairing the fire damage? Once repaired, how does a history of fire damage impact the insurability or insurance premiums of the property? What about financing post-rehab? Once rehabbed, what disclosures would I have to make if I were to sell it as a flip? What disclosures would I make if I rent to tenants as a buy and hold investment?

[Crystal Smith]

Quote from @Jon B.:

I am thinking of making an all-cash offer to purchase a SFR with existing fire damage in the kitchen at a price well below market value The property is in otherwise solid condition and in a great neighborhood. I plan on rehabbing the entire property to BRRRR or flip it. What are the considerations I should be aware of in purchasing a property with existing fire damage? Are there any special protocols in repairing the fire damage? Once repaired, how does a history of fire damage impact the insurability or insurance premiums of the property? What about financing post-rehab? Once rehabbed, what disclosures would I have to make if I were to sell it as a flip? What disclosures would I make if I rent to tenants as a buy and hold investment?

 I agree with @Andrew Syrios. While we normally don't hire inspectors for rehabs in this case you may want to have a licensed electrician, plumber & HVAC check all of your systems. It's not the cosmetic stuff that will bite you.  It's the stuff behind the walls and in the systems that you cannot see that will get you.  Have all of the systems inspected.