Re: Burned House Help Please! - Posted by Sakar Kawle
Posted by Sakar Kawle on October 29, 2003 at 07:17:38:
Well, well, well - I’m in the process of doing a burnt rehab now. I suggest that do a little diligent research before making an offer. Remember you’ll have to replace all the electrical if the fire has spread to couple of rooms. I would say electricians will charge you close to $2500 for putting the service and re-wiring the house will be another $4000. So calculate $6k just for electrical. Also, in this event you’ll expose the walls so factor-in some of that additional expense.
Plumbing - If you had copper or PVC plumbing then definitely, you’ll have to replace them. If it is cast iron, you might be ok (assuming it has not got rust all over the place). A good way to test that out would be run the shower and the sink faucets, if the water is real low on shower then you are in to replace all the plumbing.
Windows - If the fireman (when they came out) has not blown away the windows then you might be ok. But if they have and you have to replace them, calculate close to $200/window.
I would ask the local housing authorities (local inspector for that area/block) also if they have something BAD against the house in their books - so that might be of help to know in advance. Pull permits for electrical, framing and anything else that is major - since you will need to get this house inspected before you get ‘certificate of occupancy’.
Although, I also do not know the extent of fire damage, but I would advise that your hold cost will be little higher, just because of inspections that you have to go thru.
So, factor in all this and you might be fine. Also, if you do not have contractors to do the work and you end up calling people for every other thing that needs fixed - then just stay away from this. This type of rehab is probably for little experienced people. But hey, if you wanna take a chance and have room (and $$$) to absorb little frustrations this rehab will teach you a lot of things.
Just do not buy very high, so that you end up spending a whole lot on this and kill your profit. You can negotiate using the points mentioned above against the seller to get you price real down. Also, do not do anything stupid to beat other people. Just my 2c’s.
Sakar Kawle (MD)