How to rebuild a house after a fire
An investor reveals the challenges behind a home’s rise from the ashes.
• less than 3 min read
What does it take to rebuild a house ravaged by fire? Mitch Coluzzi has brought several back to life, including this three-bedroom, two-bathroom home in Des Moines, IA, destroyed by a kitchen fire. What was it like? Hear him out.
Q: What inspired you to take on this wreck of a house? “We acquired the home for $8,600 after the homeowner grew frustrated with the insurance process; the city also rewards redevelopment with a tax abatement. We demolished the damaged sections down to the foundation and rebuilt for $150,000, and just listed for $274,900.”
Q: What are the biggest challenges? “The smell is almost always the biggest issue. Getting charred wood replaced is critical. And if the fire was put out with water, the house may have mold growth. The rest of the house, even if unaffected by water/fire damage, will be riddled with smoke damage that lingers. HVAC ducts should be replaced if possible versus cleaned; it’s almost impossible to get the soot and smell out of the nooks and crannies. Lastly, there is a strong chance that sewer and water lines got blocked with debris or froze while the heat was off.”
Q: Are homes damaged by fire decent investments since they’re so cheap? “For the average buyer, no. These are complex projects, even for us. Oftentimes, there’s stigma attached to the property. Most states require disclosure of a fire in a house, and they can be hard to insure. Most banks will not lend on these projects because they have a ‘nuisance’ order, meaning the city wants them torn down. As an investor, you need to show up on an expert level to make this a profitable venture.”
Q: What advice do you have for rebuilding after a fire? “Permit-wise, it’s typically better to seek a renovation permit versus a new build, but houses that have caught fire typically lose their occupancy certificate. This means that almost everything needs to be brought up to current code. And let’s be honest, if it burned once, we want to make sure it never happens again, so updating makes sense. It’s easy to cover up fire damage temporarily, but it will come back if not handled right.”
Check out more photos of this extraordinary transformation here.
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