Rental Property Investor · Atlanta, GA · Member since 2014 · 30 posts · 3 votes
Hi BP family,
I am curious to know if there is a market of buyers that buy properties that have been damaged due to fire? Once they are purchased, what do they normally do with them?
In Sunny Florida, fire remediation must be done totally under permit. Usually rewiring is also required. So, if you buy fire-damaged property, buy it cheap!
This is a good way to buy distressed property, once you buy the property, remove all burnt walls and damaged areas (in some cases must take it down to the studs) and use a "Ozone Generator" to remove the smoke smell. Then you could sell the property like nothing happen. You can get leads from burnt houses from your local fire department. read more at: http://www.howtocleanstuff.net/how-to-clean-smoke-damage/
In Sunny Florida, fire remediation must be done totally under permit. Usually rewiring is also required. So, if you buy fire-damaged property, buy it cheap!
This is a good way to buy distressed property, once you buy the property, remove all burnt walls and damaged areas (in some cases must take it down to the studs) and use a "Ozone Generator" to remove the smoke smell. Then you could sell the property like nothing happen. You can get leads from burnt houses from your local fire department. read more at: http://www.howtocleanstuff.net/how-to-clean-smoke-...
This is true but you must disclose there was a fire. So you can't sell the property like "nothing happened."This can really scare of some buyers. You must also re-permit the home in most cases as the mechanicals and framing will be toast literally if not figuratively.
These make great buy and hold deals. Once you hold them a while the can be sold without disclosing there was a fire. Burn outs are mostly all I do so I'm really familiar with the in and outs of them.
@John Verdier those are some excellent points. I am currently attempting to buy a burn out house here in Temple and I'm trying to make sure I cover all the bases. I have done a lot of work in the pas on burn-outs as the contractor but this will be the first one that I actually own. I am a licensed electrician, so that part is covered, but do the other repairs need to be done by "licensed" people or can I do it myself as the home owner? (This is a duplex that I'm looking to buy and hold, if that makes any difference.)
@John Verdier those are some excellent points. I am currently attempting to buy a burn out house here in Temple and I'm trying to make sure I cover all the bases. I have done a lot of work in the pas on burn-outs as the contractor but this will be the first one that I actually own. I am a licensed electrician, so that part is covered, but do the other repairs need to be done by "licensed" people or can I do it myself as the home owner? (This is a duplex that I'm looking to buy and hold, if that makes any difference.)
James,
If Temple requires inspections and is inside city limits you will be required to pull permits for the rehab. Most of the time this will require full permitting because if the fire damage was significant meaning more than just smoke you will need a frame inspection, and all mechanical's and a final to get your green tag. After you purchase the property go down to the city and pull your permits. Most city's will do a courtesy inspection for your prior to starting. This will usually be called in as a stake out. Meet the inspector and tell him your plans and he will tell you what he expects. The thing will burn outs are you can't take short cuts as that will end badly for you. I have seen many people attempt the burn out reno and fail. That's usually where I come in. See before, during and after pics.
As a home owner you should be able to do a good part of it as repairs. Permit plumbing, electrical. That is what I did. Yours didn't burn in the attic?
@John Verdier Thanks for the info. It is more than just smoke damage and, luckily, I already know and am on good terms with a couple of the local inspectors. I hadn't actually considered asking their opinion on what all was expected, but that's an excellent idea.
@Luis Montanez - How does one go about getting those leads from the local fire department? My company and I are interested in focusing on this niche. Feel free to send me a PM! Thanks!
@Luis Montanez - How does one go about getting those leads from the local fire department? My company and I are interested in focusing on this niche. Feel free to send me a PM! Thanks!
Getting leads now are done through paid subscription services that may be very expensive. If you have a great relationship with a fire chief, they may be able to help you out directly. They tend to want to stay anonymously and you may work out fee compensation for it.
Fire damaged homes can be difficult to buy in lower priced markets/neighborhoods. The level of rehab needed is usually pretty intense and between having to used licensed contractors, dealing with the city inspectors, and, in many cases, having to bring everything up to current building codes is incredibly time consuming and expensive. Contrast that with a normal rehab where you can often get certain aspects of the home grandfathered in and usually only need one or two specific tasks done by licensed professionals. Much more streamlined of a process.
If you want to make that your niche, go for it. I'm sure there's money to be made there, but you are certainly going to work hard for it. Buy deep.
I have a fire damaged house in Louisville, KY for sale if anyone is interested.
939 W Evelyn, 3/1 833sqft 40215--rent-850 comps in the 70's--Fire damage, some demo done, small brick fireplace in front room--good foundation, needs most everything--15k obo
@James Stevens, did you end up rehabbing the property? Do you have any insights about the additional cost break up and any critical learnings you got from taking up that project?
I am seriously considering a burnt property in Denton, TX, with only the kitchen area partially burnt.
I have recently had a fire in my home in Elizabethtown Ky. Home is appx 9000 sq ft. Having difficulty uploading pic of home. Starting to find companies nationwide that purchases fire damaged homes to get the ball rolling. Also, if anyone could guide me on uploading pics that would be appreciated.