CITY INSIGHT HOUSTON • May 07, 2019
Buying Flooded Homes
After Hurricane Harvey hit Texas, tens of thousands of houses were damaged. Although so many homes and lives were destroyed, there was something positive that came out of the devestation. There was now a wave of investors who would be able to go into buying flooded homes at prices significantly lower than what the homes were actually worth. The opportunity for growth would lie in buying and flipping these homes.
Sell or Rebuild?
For some homeowners, rebuilding their home is not a viable option. If a homeowner was not in a “flood zone” and did not have flood insurance, most people unfortunately did not have the funds to rebuild or at minimum elevate their houses to prevent future flooding. By selling the home for the value of the land, they are able to get enough money to move.
There are a number of things to take into consideration when looking to invest in real estate. An available option is buying previously damaged or flooded homes. The main advantage of buying a previously flooded house is the price. For a house that could have cost $300,000, an investor may find a flooded home for around $135,000. This of course is excluding the cost of repairs but if the price is right, investors are willing to take on the gamble.
Is The Risk Worth The Reward?
Numerous people tend to think the cons may outweigh the pros and as such think it is not worth it. In a flooded home, if mold remediation was not done correctly, the spores will regenerate as soon as they come in contact with water. Good contractors will help rebuild but may come at a pricey cost depending on the extent of the damage.
Companies are looking to invest millions of dollars in buying flooded homes in Houston. The idea behind this is to rehabilitate the city bit by bit. People have managed to sell their homes to investors and settle mortgage fees while also having some money left over to buy or lease a new house. Disasters can create opportunities and one such opportunity can be seen in the homes for sale in Houston.