Posted by kertis on April 19, 2006 at 19:41:03:
the insurance paid for the property…Its now mine paid in full…
My Tri-plex Burned down - Posted by Kert
Posted by Kert on April 19, 2006 at 15:11:41:
I had a triplex go up in smoke…The Insurance wasnt enough to rebuild it seeing as how the rebuild price doubled from what it was insured for…but I did pay off the mortgage and have a few thousands left…Anyone know of any programs, loans or grants available to rebuild???
Re: My Tri-plex Burned down - Posted by John Corey
Posted by John Corey on April 20, 2006 at 09:22:21:
Kent,
If you have a free and clear lot and a tiny bit of cash otherwise you should check to see if construction financing is available from a bank. With the lot you might have all you need to bootstrap your way forward.
As others have hinted at the process for construction is time consuming even when you have someone else supervise the build. Hence it might not be the best use of your time compared to selling the lot and using the cash in another deal.
John Corey
Been There. - Posted by Jimmy
Posted by Jimmy on April 20, 2006 at 07:42:11:
You probably learned some lessons about insurance coverage. I certainly did. I used to carry just enough insurance to cover my investment. I was trying to keep my premium expense down. then fire #1 struck. I made a small profit on this involuntary conversion (a fancy tax phrase). But my property was worth more than I had it in. I lost that profit.
After that, I reviewed all my policies and bumped coverages to get them pretty close to FMV. and then I did something else. I raised my deductibles to the highest levels allowable by the insurance company, and then I bumped the coverage again to make up for the high deductible. I ended up with a lot more insurance for only a little more premium.
when fire #2 hit, I was much better off.
don’t forget to add a litle extra coverage for demolition costs.
back to your question: Is new construction your gig? Would this be a project you would embrace in the normal course of your biz? If you rebuilt a triplex (or whatever), could you sell it for a healthy profit? In my areas, new construction of rentals is not a good biz. but I don’t know your area or its economics.
Re: My Tri-plex Burned down - Posted by JDR
Posted by JDR on April 20, 2006 at 07:14:29:
Well you have value in the lot and if your area is like ours you will have credits already paid for the property. Such as Traffic, Water, Sewer impact fees. In my area for a tri-plex is worth close to 50K these days.
Re: My Tri-plex Burned down - Posted by Nate-WI
Posted by Nate-WI on April 19, 2006 at 18:23:20:
Why rebuild? Move onto the next deal. Do you want the headaches of trying to rebuild a rental? I would take the money and run,
Nate-WI
Re: My Tri-plex Burned down - Posted by Randy (SD)
Posted by Randy (SD) on April 19, 2006 at 15:46:08:
Contact your local Community Development office there are numerous Federal, State and local grant programs as well as low interest and no interest loans?