Burnt Out! Literally

7 Replies

Hello fellow BP folks.

Ok so I'm a newbie and I just had the pleasure of viewing a piece of property that has been badly burned out. I've been to a few seminars where they say that these types of properties are a steal but I'm filled with uncertainty.

I've done the calc and there's potential profit but it's a total gut job, from roof to walls, framing, electrical, the works

I've talked to the owner and told him that I would reach back out to him within a week to give him a ye or nay.

Any advice would be most appreciated!

THIA

In construction it depends on how burnt out the house is. Is it a complete burn out? How are the structural members? Is the foundation and exterior walls any good? If your not careful you can end up spending as much as building new.

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@Shawn Thom My aim is to wholesale the property.

@Marcus Brown Hey Marcus, the foundation looks sound as well as other walls with the exception of the back wall where the kitchen/sit in is located, looks like the fire started in the kitchen, the owner did make a small attempt at putting up new framing inside the house but I guess it was just too much for them. They called me via one of my yellow letters.

The thing is, is that the arv is around 40k, now the guy is pret-near trying to give it away and there is also a condemned notice from the city posted on the unit.

@Mike D'Arrigo I was thinking the same thing, and a established experience rehabber would have the resources to put it back together and still have equity. just my thoughts.

Thanks everyone.

@Milind Shastri Hey, this has been so long ago I don't think I took on the deal. What I will say that I have sold at least one burn out in a fairly good neighborhood (stricly wholesale) and it was profitable for me. I'd imaging the rehab would be more than just a cosmetic flip in this case since it was in a fairly nice neighborhood with an ARV of over 125k