Are Fire Damage Properties Good Targets for BRRRR?

Question

Title pretty much says it all - interested in anyone's experience renovating or investing in a fire damage property.

Jeremy VanDelinder · Answer

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 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.

That's a quick run-down. Happy to answer any other specifics you have.

Andrew Syrios · Answer

They can be, but fire damaged properties are often a lot of work and definitely need permits and the like. So you need to make sure there's still plenty of equity after all the necessary repairs. The temptation is to budget to little on big projects like this and then be left with little or no equity after a very long project.