Considering a property that had a fire.....should I?

Question

Hi all -

I am considering a property that has had fire incident about a year ago. From what I know, the tenant had to move out for about a month while they fixed up the kitchen. Everything looked fine when i walked through it but I am not sure if it's a good idea to purchase this property?

What are your thoughts? What do I need to consider?

Any advice is appreciated!

Steven Stokes · Answer

@Kenneth Garrett offers some good advice.

I would add that if this is your first real estate purchase that you get advice and help from a local experienced investor in your area. Go to some real estate club meetings or meetups. The information and networking benefits are beyond anything you will learn from here about your specific area and situation.

BP is excellent but networking in your area will open doors and answer a lot of question that are specific to you and your success.

I hope this makes sense. lol

Good luck

Stephen

Kenneth Garrett · Answer

@Yvette Chung

FOIA (Freedom of Information Requests) the records from the Fire Department and the Building Department for permits and inspections.  I FOIA every project I am going to purchase.  I find out whether permits were issued, inspections conducted and the details of what was submitted for the permit.

Typically the insurance carrier will prepare a detailed report as to what they have approved to repair.  I encourage everyone to FOIA any project they are going to purchase.  I FOIA the Health Department for septic and well if applicable.  Water billing for outstanding water bills.  May not show up as a lien on title. Could be thousands of dollars.  Any code violations, liens, judgments, etc.  This is part of your due diligence.

Good Luck.

Frank Fletcher Broucek · Answer

Concealed construction. You cannot let this be you big obstacle. Inside the walls, drywalled ceilings are electrical, plumbing DWV, ductwork and from maybe where you are, hot water heating. An inspector operates everything: if your bathroom works the likelihood that the hot, cold, DWV are ok. There are ways to tell. Home inspectors are like detectives. But your property interest is also on a fire department file. They informed the local building dept. the owner at the time would have been approached by the building dept. and their inspection would have been written. Get that report via FOI. Then the building dept. would have issued a certificate of occupancy. They would have the contractors name, etc., the owner, insurance. Your due diligence effort can contact them all: your home inspector can be asked to communicate and ask for what happened. It won't be a secret from a buyer. You'll find out. The home inspection is important to you. It provides you with information. For one dollar you can get the municipal inspections, certificates, etc. I am a home inspector. Imagine the envelope I once received inquiring for my Illinois clients property past flood!

Justin Tahilramani · Answer

@Yvette Chung - I would also ask the sellers to provide all of the documentation from the repairs. That will give you an indication of the scope/magnitude of repair. Also - it will allow you to determine if the work was completed by a qualified contractor.

Frank Fletcher Broucek · Answer

Get a home inspection. Get the digital photos. You can get a home inspection without making an offer if the seller permits you. Look to the building department there for a permit and see what it says. I have worked for buyers that have bought fire damaged homes.

Considering a property that had a fire.....should I?

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