Sink hole issues in neighborhoods

3 Replies

We are buy and hold investors on the west coast of Florida (Pasco County). As with many areas in the country there are sink hole problems throughout different areas. Does anyone have advice as to how far away to stay from specific addresses that signify past permits to fix sinkhole, or potential ground settlement, issues. I know the insurance industry stopped the sink hole claims around 2011 (at least in Florida) due to an abuse of the repair privilege. As far as I can tell the "abuse" took place from 2007-2011. So homes that had permits pulled during this time may be only "cracks in driveways". We find good investment homes and when I search the permits in the vicinity I often find homes nearby that have current or past permits for ground settlement. So far, I have ruled out the home but was wondering if I'm missing out on good investment homes. How close should I be concerned? Thanks for your inputs.

Buying sinkhole homes from banks is a big part of my company's business. (I live in Pasco) You just need a good sinkhole repair firm with an on-staff engineer. 

Its not for everyone, but if you buy and rent a properly repaired sinkhole house can be a goldmine.

I agree with Jeff. Repaired sink hole properties aren't good for flips because the "S" word hurts the resale value but for that same reason, they make great rentals. You are right, a lot of houses that supposedly had sink holes really just had normal settlement and it's unfortunate that they got labeled that way because of people taking advantage of insurance. I have two repaired properties rented, paid $35,000 and $43,000 and they rent for $750 and $800. I also live and work in Pasco county and it's almost impossible to stay away from adjacent properties that have reported settlement issues - they're everywhere. It's even worse in Hernando county but I recently sold a rehab in Spring Hill when the house next door had a big sink hole contractor's sign in the front yard!

@Lisa DuFaux You are right.  Really everything west of I75 you have have to pay attention closer than most, but Spring Hill is brutal....

Medium web logoEric Odum, Florida Investment Real Estate | 813.514.1070 | http://www.investfloridashow.com

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