What are your thoughts on this property

[Haden Miltenberger]

Hello everyone! 

This is my first post on here, so that's exciting, haha. Anyways, I've been practicing going over numbers on properties while I get my finances in order. Well I came across this property and was wondering what thoughts some of you have about it. The property is in my area (ND) that just showed up on the market. 

This is a smaller property that was converted into 6 unit. Well, it caught fire and they are now trying to sell it as it is. This place needs a lot of work. In my opinion way more than just the area that was damaged from the fire.

They are currently asking 60k for the building (which is just under half the price from what it last sold for). 

If I was farther along in my investments I believe I'd go for it with it being close to our college. I'm just wondering what your thoughts would be on it I guess.

[Lauren Robins]

Hi Haden!

Welcome to the community! It’s great that you’re already practicing underwriting deals and thinking critically about investment opportunities, even before you make your first move—that mindset will serve you well in real estate.

Regarding the property you found, it sounds like a classic value-add opportunity with some significant caveats. A 6-unit property listed at $60K in North Dakota, especially near a college, could represent a substantial upside if the numbers make sense and the renovation is feasible. However, when a building has suffered fire damage, there’s often more beneath the surface than meets the eye. Fire affects not only the visibly charred areas but can also compromise structural elements, electrical systems, plumbing, and even the roof due to heat and water damage from firefighting. You’re absolutely right to suspect that the needed repairs go far beyond the visibly burned section.

From an investment perspective, this kind of deal could potentially pencil out very well—particularly because you mentioned it’s listed at under half its previous sale price. But the real risk lies in the scope and cost of renovation. This isn’t the type of deal a new investor should go into lightly without strong reserves, reliable contractor relationships, and preferably experience or guidance from someone who's tackled major rehabs before. Insurance complications, code upgrades, and local permitting processes can add time and cost you might not initially expect.

Since you’re still getting your finances in order, it might be best to keep this one as a mental exercise rather than a real pursuit. You could even take this opportunity to create a full pro forma—estimate purchase costs, rehab costs (you could call a contractor or two just to get ballpark ranges), after-repair value, potential rental income, and holding costs. Run some scenarios to see how different budgets or timelines affect your return. It’s an excellent way to sharpen your analysis skills so when the right property does come along—maybe a lighter rehab—you’re fully ready to jump in.

Keep your eyes open, stay curious, and keep running numbers. Deals like this will keep showing up, especially if you’re in a market where older housing stock is common. The key is being ready when the right one comes along. 

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.