Purchasing Fire Damaged Homes
Does anyone have experience in purchasing homes with minimal fire damage? If so, would you care to share your experienc? I am looking for items such as:
How you made the deal, did you purchase from insurance company, homeowner, bank, etc?
Was the rehab cost high?
Did you have to get a company who specializes in fire damaged homes to rehab?
Would you recommend this as a profitable profit center?
Anything else you consider important.
I am not speaking of b adly damaged homes with structure damage. I am a former firefighter, so determined the liglty damaged homes would not be to hard for me. Of course heat,water and smoke can do a lot of damage which you cannot see without digging deeper. Looking forward to reading the responses.
I can answer #2, there is a weight supporting A/C Bracket made. You can get them at Lowes or Home Depot. I linked an example below:
http://shop.store.yahoo.com/frigidaire/subr.html
No one?
My first rehab project was when I had around 10K. This was about 3 years back. At that time10K would qualify me for a HUD 203K loan at 3% down. I would check HUD foreclosures in your area for rehab projects and if you find any, apply for a 203K loan. You would only need 3% downpayment for the purchase and rehab, eventhough the entire process for obtaining the loan takes a lot of time. I think this would be the best way to start your first rehab project given the amount of money you have.
Thanks for the reply!
Wouldnt that meen that I would have to pay about $6,000 down, then taxes, closing costs, insurance, maybe even a month of mortgage payment (to be on the safe side)... wouldnt leave me much room for rehab.. i dont think..
No, the 203K loan includes rehab costs too. So you will be paying only the downpayment and closing costs. The only caveat for 203K loan is that it is for owner occupied properties. So you will have to sign a paper saying that you plan on living in the property once the rehab is completed.
Ah I see! Now, of course plans change and if I "decide later" im not going to live in the property, are there penalties?
"Ah I see! Now, of course plans change and if I "decide later" im not going to live in the property, are there penalties?"
What you are talking about is called "Loan/mortgage fraud", and i is a federal crime. Be very wary of anyone that recommends that you even consider this.