Posted by Mike Oldfield on April 12, 1999 at 03:13:40:
I’ll take it if you don’t want it! Just kidding.
Insure the structure for full replacement cost, then burn it down. Sorry just kidding again.
In all seriousness. You can’t lose.
If the property burns, or is hit by natural disaster, very often the damage is not 50% believe it or not. Plus the 50% is a judgment call which you can overcome with a little persuasion if you have your heart set on rebuilding. (You will find that you make out better collecting the insurance and walking than rebuilding because you can buy them cheaper than you can build them) KEY POINT Always insure for FULL REPLACEMENT VALUE They don’t depreciate the damage claim. It cost a very very few bucks more but when you have a loss hallelujah sp? In most cases damage is less than 50%. If it is more than 50% then collect on the insurance policy (All your investment and profit all at once instead of over a long period of time) scrape the remains (which should cost no more than a few thousand bucks and sell the land, or develop it into a traditional off frontage structure like mini-storage, boat RV and Car storage or a mobile home park. Stop worrying about zoning if you buy it right YOU BOUGHT IT RIGHT. You will do fine. Go for it. Write me at U2oldfield#aol.com Good Luck Mike Oldfield