“Unusual Opportunity has Man Scratching Head” - Posted by PFreeman
Posted by PFreeman on January 18, 2000 at 21:08:42:
Custom built (by the people who own it) 2500 sq ft, 10yrs old. Looks something like the South Fork house on the Dallas Soap. Owner?s property got taken by the state, (imminent domain), for a new highway. The owner?s decided to buy it back from the state and have it moved. At the time, 1 ½ yrs ago, it appraised for $189,500.
A month after it was all hooked up and the owner?s were living in it, a tornado came through and blew the house off its new foundation.
The mover wants another $20,000 to put it back on the foundation, which is what they just paid to have it moved to the new location. The owner?s have decided not to do it because of all the trauma they?ve been through with it, including the fact that the wife and kids were at home when the tornado hit. They want it moved off the property so they can build a new house. They?ve had 2 structural engineering company?s inspect the house and both came back with reports stating that the building is sound. They mentioned that 1 of the two gave them a repair estimate, but I haven?t seen the reports yet.
I know these folks professionally, through business contacts with the firm they work for. They?re good honest people so I don?t have any fear of being ripped off. After talking with them several times, my gut feeling is that they would take somewhere between 20-30k for it. I also believe that they?ll hold paper until it?s sold.
I?ve done some homework and believe that the house can be completely restored (including the purchase of a 2-3 acre lot and moving costs) for 100-110k. I also believe that the house will retail for 200-210k when finished. It?s in an excellent area, about 15 miles outside of Oklahoma City.
I wouldn?t normally be interested in something like this but this is no ordinary house. The framing construction alone is unbelievable, 2x6 exterior walls, 6 tripled-up 2x12 floor beams with 2x12 cripples in between, etc. The visible damage consists mainly of cracked walls. Not a single crack in any of the ceilings. No bulges in any of the floors although you can visually see that it?s unlevel, from front to back. Two of the windows on the second floor imploded, although the storm windows remain unscathed. The electrical service box remains intact. Plumbing and sewer lines separated at the mains, under the house (where it used to be).
Does anybody have any experience with this type of situation? If so, I would truly appreciate your experience and insight regarding how to approach this. I?ve done a high level cost analysis but it?s long and would be difficult to post online. I have a million questions. Beginning with things like, is the house personal property or real property at this point? How and what kind of insurance could I get on it? Do I have to disclose to an insurance company that the house has been written off as a total loss by another insurance company? Etc, etc, etc.
PS: The insurance company put up a big fight about writing the house off as a total loss, but they were eventually pressured into doing so.
Good Investing to you,