Investor · Oklahoma City · Member since 2019 · 56 posts · 5 votes
Good Morning BPers,
I am going to check out a multi-family today with my real estate agent the MLS description stated one of the units had "some" fire damage. I know it is difficult to ask without having seen the property and sharing any further details, but there were no pics of the unit for me to see.
What would you look for in fire damage to assess the viability of the assessment?
Would a police report be available or a fire report to get an idea of the damage?
Can you list out the common things that needs to be done and addressed from a rehab perspective in order to make it rent-ready?
Can you list out common things that I would need to think about to address (i.e construction, legal, city permits and certif of occupancy?
Please I would appreciate your feedback and guidance.
Real Estate Coach · Round Rock, TX · Member since 2015 · 431 posts · 235 votes
4y
I flip fire-damaged properties and own a fire damage restoration company. It can be a big undertaking, although there can be profit in it IF the numbers are right and IF you have done your homework to know what you are getting into (both big “IFs”). Unless you are rather experienced with this type of damage, it may be hard for your to tell the extent of damage. The place to start is by asking the seller what the insurance company decision is—if they will share that info, that might tell you some of what you need to know.
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. So even elements that don’t appear damaged can be contaminated. Also, ODOR is a huge issue. If the odor is not properly mitigated that will cause ongoing problems.
The Fire Department report will be of little value. It will just tell you what happened. If they have an estimated damage in the report it is a pretty wild guess by a Fire Marshall who doesn't estimate for a living. I would recommend you find a fire restoration company/contractor to walk the property with you and give you a good understanding as to what needs to be done. There are many things that could be overlooked as part of the renovation on fire-damaged properties.