I would be very leery of a house burned that bad. The cleanup and repair cost is more than you would think.
20K down is too much. Also it is quite possible that the repairs would cost $100,000 or more.
If you can tie it up with a small deposit, like $100, and a contract with an escape clause, then you can show it to some rehabbers. If they refuse to touch it, unless at a very low price, get their bids and go back and renegotiate. Tell the seller it needs a lot more work than you thought and that you must cancel the deal (using the escape clause) unless they will give you a better deal.
I need help structuring my first potential flip. I hope someone out there can give me some good advice. The home in question is a victorian style built around the turn of the century. There is extensive fire damage on the top level and it needs a new roof. The home is paid for and the owner is asking 165,000 and mentioned that he could be flexible on the price and he is looking for 20k down. Homes in the neighborhood in good condition are selling for between 265 - 275k. What type of offer can I put together to show my rehab investors? Thank you.
Go to the tenant and give him half month;s rent if he leaves in 3 days, don’t give him money until he is out of the apartment. Tell him is other choice is eviction, you might be able to tell what is thought process is in person with this statement. Maybe he will say ‘i don’t have to get out cause building is up to code’, etc.