Updated almost 4 years ago on . Most recent reply
Wholesaling A Burned Down Home
Hello all.. I am interested in getting a house under contract that has been burned and in very bad condition. Pretty certain it will be a tear down. This will be my first time dealing with a fire damaged home so not really sure how to calculate the ARV. Any pointers? How would I determine how much it will take to rebuild the home? The home was very old built in the 60s and sits on 2 acres. Any help would be appreciated. Thanks!
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I would find investors that do "burn-outs" in your area and ask them what they would pay for it.That's a quick way to gauge ball-park numbers. I know in my area there are 2-3 investors that love buying fire damaged houses and re-doing them. I would find those investors in your area because it's likely they will be the only people who would buy it.
As far as value goes, in some scenarios the best "value" is for the land minus the cost to tear down the house. I would try to comp out what the 2 acre lot value would be without the house on it and run the comps both ways.