Burned Properties!

26 Replies

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?

Thanks for the insight.

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/

Thanks for that insight Luiz. I am looking to focus on this area as a business.

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!

Originally posted by @Luis Montanez :

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.)

Originally posted by @James Stevens :

@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.

Looks like my old kitchen.

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.

there is absolutely a market for this type of investing 

every time there is one on the news or we see 1 driving around we send them a marketing piece to buy there house 

i prefer to buy and hold them

@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!

I would love to get information on how to gwt these leads? Please PM with any details. Thank you.

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.

If anyone is interested in Burn out homes in the Atlanta Area PM me...

Can approach the owner what he wants to do and offer a price like 75% of the value. Need to wait awhile for insurance claim processing..... 

If anyone is interested in a partially damaged home, due to fire, in the St. Louis, MO area, please PM me...

if anyone is interested in fire damage homes in Indianapolis area please contact me. 

This post has been removed.

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. 

Originally posted by @Jeff Richardson :

@Milind Shastri What's keeping you from doing the Denton deal? That's a very hot area for either rental or flip.

 It was a pretty hot property. Great neighborhood and comps.  My offer at 5k above the ask price did not get accepted unfortunately. 

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

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here