All Forum Posts by: Jonathan Wheeler

@Jazmine S. I did not end up purchasing that property and have not come across any other fire damage flips since. The roof on this particular property was pretty intact, but the whole back side of the house, mainly the second floor was gone. 

So I am trying to figure out if it's worth investing in a bad area of town simply for a higher cash flowing scenario. Property values may never rise much, but for the price it will be really easy to maintain positive cash flow. For instance, a 5 unit building could go for $50k or less. I realize it's more headache dealing with lower quality tenants and that maintenance costs will be higher, but it's hard to think that I can't make a decent profit with a 30%-40% maybe even as high as a 50% cap. 

@Rick Bee

Was that flip a single family or multifamily?

@Stephen S. 

Thanks for the input. The wood stove idea could definitely work. Only thing I would be concerned about would be if a potential buyer has a prejudice against wood stoves in their rentals. I know alot of landlords that refuse to let tenants use them due to insurance liabilities.

@Craig Wilcox 

Absolutely true. Haha!  

That's good advice. I work with some interior designers that I would look to for advice on finishes and what is popular in the area. So you installed all new mechanicals and everything? You practically built a brand new house, minus walls and slab. How much of a pain was it pulling permits and working with inspectors? Are there generally alot more hoops to jump through with fire damage rebuilds? 

That's a pretty extensive rehab @Paul Ortiz. Did you use your own contractors, or hire fire damage specific contractors? What were some of the unexpected expenses that you encountered linked to the fire damage, if there were any?  I have quite a bit of experience in building construction. My background as a project manager has brought me into some crazy projects. I have limited exposure into fire damage, which is why I'm not diving right into it just yet. 

Got the pictures. Thanks Michael!

@Craig Wilcox 

I believe it is a side by side duplex. It's difficult to get comps in the area because of the size. There are not many properties in the vicinity that closely compare. The market for 4br units I believe is pretty high. There is a large population of young college grads in the area that tend to go for rentals like that thus making them pretty desirable. Thanks for finding that post. That's great advice.

@Michael Hicks 

I definitely appreciate the warning. I don't want to get into a complete gut and rebuild on a 4800sq ft property. It has alot of upside and potential, but I am pursuing it carefully. Not looking to get in over my head. I have used Kilz primer before. Great product! Never used it in a smoke damage application. I would love to see some pics of the before and after of your project. 

@Jonathan Key 

I will let you know how/if it works out. Curious about that sealant product as well.

@Craig Wilcox 

That's my biggest concern getting into a project like that. Walking into a newly remodeled home and smelling smoke would be a huge turnoff. It would probably be a good idea to talk to some contractors who specialize in fire damage remodels and find out what steps they suggest. This house has huge potential. One of the biggest duplexes I have ever come across. 8br 3ba, 4,800sq ft. Large scale also means large rehab costs.