Stacy,
I would suggest notifying the city inspector’s office. If they can’t help, they’ll know who to contact. Find out exactly what is expected of a ‘firehab’ to pass inspection. Get a purchase agreement contingent on costs to rehab (must pass city’s inspections). Make sure everything neccesary for work is spelled out on the bids. Depending on the extent of damage, firehabs can be a big ‘can of worms’. Make sure to have all bases covered before commiting to the purchase.
Just my .02
Have a gentleman calling from my bandit signs. Here’s the scoop:
Has a triplex (guess that what you call it)in D grade of town.
Unit A & B rented @ $250.00 each. Unit C was rented but tenant left iron on & burn unit out 6 months ago. Unit currently boarded up with tenants still in A&B. Had contractor estimated damages at $7,000???so he says.
Insurance company paying seller $23K for damage. Mortgage balance $42K. Seller wants to keep insurance check & sell property as is for $15K. He will hold mortgage.
Don’t know beans about fire damaged properties. What do you think? THANKS…
If it’s an older property be careful of “code updates”. Some cities will make you bring stuff up to current code when major repairs or renovation are done. I’ve heard of situations where just one wall, or just the one room would be involved. Other horror stories have told about having to install new windows and doors and move walls throughout the entire building in order to “meet code”. I’d be real careful to check that out that possibility before buying into such a property.
One question, though. Why would the seller want to keep the $23k and not fix the property? It seems that he stands to profit $16k and could have a really decent cash flow after repairs. Methinks something smells fishy here. Be careful. If you go ahead, make sure that the owner pays off the mortgage, and doesn’t just pocket the $23k.
