Disaster Strikes...Help with a rental property

1 Reply

Hello,

My wife and I are small-time RE investors. We acquired this property in 2018 (2-family) and it has been pretty smooth sailing since then. This past hurricane (Ida) was a whopper and flooded the first floor, destroying the 2 kitchens. At this point, our decision has been to issue a Non-renewal of lease notice with the idea to renovate and flip it. HE insurance will not cover floods and since we are not in a flood zone (on a hill) we did not add flood insurance, but it will cover some things (overflow from our backed-up sump pumps and a roof).

We are hesitant to make repairs fully to the building because we want new buyers to have new things, not once-used (current tenants). One of the tenants has issued us a low-ball offer for the house, which we promptly rejected but now we are stuck in a kind of limbo. Thoughts? Opinions? Anything would be helpful

One of the tenants who offered low ball where are the living? If property doesn't meet health codes don't they have to move? If vacant you need to:

what is cost of dumpsters vs buying a pick up or finding some hauler to throw away all the demolition 

secure and board up and add cameras, get roof bids, order roof parts, roof needs to get on the house ASAP

clean out dry wall, everything fabric throw away, cut up and remove carpet, mop the studs and floor with bleach and water solution (5% bleach), inspect electrical - maybe some shorts or problems, order flooring for kitchen and baths and new kitchen cabinets (measure like you are OCD ten times), how is the sub flooring? Can you paint and seal sub floor just to look decent for new buyer in all other areas? Replace the drywall, don't add base boards yet.

You can't sell to a standard buyer without it cleaned up. You can sell it to an investor for CASH only as is but you won't get the money you want.

How far do you live from the property? 

Check with FEMA, file for money. Check with planning (what rules do they have)

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