We have a deposit disposition sheet we go through when a tenant moves out in order to assess damages.

To me, these third-party damage protection options shift the power over the money away from the owner.

Here's the sequence we typically follow:​🏗️ Interior Rehab SequencePre-Closing PreparationScope of Work: Conduct a thorough walkthrough to identify structural issues, outdated systems, and cosmetic updates needed.Budgeting: Develop a detailed budget, including a contingency for unforeseen expenses.Permits: Obtain necessary permits to avoid delays.​DemolitionSelective Removal: Remove outdated or damaged materials while preserving elements that can be reused.Site Preparation: Ensure the site is clean and safe for the upcoming work.​Structural Repairs & FramingFoundation & Framing: Address any foundational issues and modify framing as needed for new layouts.Inspections: Schedule inspections to ensure compliance with building codes.​Mechanical, Electrical, and Plumbing (MEP) Rough-InsSystems Installation: Install or update HVAC, electrical wiring, and plumbing systems.Inspections: Conduct rough-in inspections before proceeding.​Insulation & DrywallInsulation: Install insulation to meet energy codes and improve efficiency.Drywall: Hang, tape, and finish drywall, preparing surfaces for painting.​Interior FinishesPainting: Apply primer and paint to walls and ceilings.Flooring: Install flooring materials, ensuring they are protected during subsequent work.Trim & Millwork: Add baseboards, crown molding, and other decorative elements.​Cabinetry & FixturesCabinets: Install kitchen and bathroom cabinets.Fixtures: Mount sinks, faucets, lighting fixtures, and hardware.​Appliances & Final TouchesAppliances: Install kitchen appliances and test for proper operation.Final Inspection: Conduct a thorough walkthrough to address any punch list items.​⏱️ Timeline & Efficiency TipsProject Duration: Aim for a 3–4 month timeline, adjusting based on project scope.Scheduling: Use project management tools to coordinate trades and avoid downtime.Communication: Maintain clear communication with contractors and suppliers to ensure timely deliveries and work completion.​📋 Tools & ResourcesProject Management: Utilize software like Trello or Asana to track progress and tasks.Checklists: Develop standardized checklists for each phase to ensure consistency across projects.Budget Tracking: Use spreadsheets or financial software to monitor expenses and stay within budget.​

The numbers could work, especially if you can reposition to MTR and increase cash flow, but the success of this deal hinges on having a reliable, local contractor who can handle a fire-damaged property.

California's SB 721, known as the Balcony Inspection Law, requires multifamily property owners to inspect exterior elevated elements (EEEs) like balconies and decks.

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). 

Quote from @Jemini Leckie: You can take it out as wear and tear for the property since it was still on the property and the tenants caused the damage. 

They just moved out, and the carpet in their unit has significant damage — cat stains, paint spills, random stains, and a ripped-up spot from an office chair.

It is also a very happy owner who allowed flexibility in the midst of it all—and is now thrilled to have had a smooth transition between tenants, with an adequate scope of work, a plan for and virtually no impact to income.It is also me, happily gifting this trim "damage" from the disposition letter.

Quote from @Mike Loughry: Hello – I am looking for advice about how to deal with a predatory water damage restoration company.