Make a Profit from Fire-Damaged Properties
this is it movie For the real estate investor, buying a fire-damaged home can be a great investment. It needs to be cautiously done, as there are other hidden problems that may be risks you are not aware that are there in the home. Since most of the fire damage is generally a structural damage to the home. You will see the damage upon viewing the home so you are aware of the surface damages and what you will need to do to fix the home.
Most of the damages are smoke and odors from the fires. There are ways to remove the damages including scrubbing, degreasing, and sealing the new areas with paints and sealers. Removal of the drywall is the only way to remove most of the smell and damages so be prepared for this part of the project. You can use a restoration company for most of the repairs for a reasonable price.
The plumbing is sometimes damaged due to the heat of the fire. If it is a newer home, the pipes are PVC, which has melted from the heat. The copper pipes will be loose from the fire heating the solder and joints. These are easy fixes also yet find out the extent of the damage because you may have to hire a licensed plumber depending on the codes in your area.
The electrical will be damaged as well and burnt or short-circuited in the different areas including the fuse box areas. Look at the light switches, electrical outlets, and all the light fixtures for damage. This can be a costly repair yet it depends on the amount of damage the home suffered. There again, find out the codes for your area as a licensed electrician may be required to fix different areas.
Check for flood or water damage from the firefighters putting out the fire. This can cause unseen damage to the walls, ceilings, and floors with the water soaking into the various areas of the home. Check the basement for damage and standing water. Check the furnace and water heater as well for possible damage.
Have someone with knowledge review the damages to get an estimate on the repairs. Once you get an idea of the repairs then arrange to have the repairs fixed. Do as much of the repairs you can to save money.
Most fire-damaged homes sell for a cheap price. You can buy an average home for around $30,000, fix the damage for about $15,000, or less, then sell the home for over $100,000. That is a $55,000 profit on the home. This is one of the reasons buying fire-damaged homes is a great investment since the profits are generally rather high for the investor.