Episode #430
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My Investment Property Burned Down—What Now?!
https://www.biggerpockets.com/blog/my-investment-property-burned-down-what-now?utm_source=youtube&utm_medium=description&utm_campaign=none
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You get a call one day from the fire department, telling you, “You’ve had a house fire that’s destroyed your rental property.” What do you do first? Check on the tenants, call the insurance company, or start thinking of ways to financially recover? Your tenant has lost all their belongings; you’ve lost an investment you worked hard to acquire. If everyone is safe, what’s the next step you should take? Or, a more important question: what would you have wished you knew BEFORE this happened?
If you think the elite investors at BiggerPockets are immune to these tragedies, you’re wrong. BiggerPockets CFO Aaron Sallade was in this exact position earlier this year when he got a phone call no one wants to receive. His property was destroyed, but thankfully, his tenant walked away unscathed. He now needed to go through the next steps: submitting insurance claims, getting restoration quotes, and, if he chose to do so, selling the property.
Aaron shares the entire timeline from the rental burning down to reaching out to insurance, getting restoration quotes, and eventually deciding what to do with the property. He even dives into what he wishes he had known BEFORE this tragic event, and not hearing his advice could cost you!
00:00 Intro
01:05 First Rental Property Numbers
03:55 “Your House Was Destroyed”
06:49 Getting the Tenant Settled
09:10 Working with Insurance
13:15 Restoration Timeline and Insurance Payout
14:47 What to Know BEFORE This Happens
18:53 Rebuild or Sell?
22:52 Other Options to Sell
26:46 Final Numbers On the Rental
28:32 Insurance Rate Changes
30:50 Worst Case Scenario Resolved!
