Have you ever purchased a unit just after a hurricane with water damage? Have the repair costs on water damage been small enough to justify the purchase with profit once the local market recovers? We just bought a unit, as I have faith in Florida, being a resident here, and I believe the market will always recover in Florida; I may be biased! Any thoughts? I am not sure we quite understood the scope of the necessary repairs, and I am not sure that my seed capital will cover the necessary costs before resale.
@Dana Walker hey dana did you purchase this property post hurricane with the knowledge of water damage?
While I have never purchased a hurricane damaged home myself, I do know investors who have. At the right price, most hurricane damaged homes can be justifiably purchased.
I see you are from Orlando, is that where you buy?
Another thing to consider is the impacts the recent hurricanes have had on flood insurance. I know that in St. Augustine, flood insurance has gone through the roof. It has risen so much in some areas that some major development plans have been put on hold, and some homeowners are having a tremendous time selling. But this may just be because the hurricanes hit going into the slow winter real estate market.
St. Augustine is different, however, because of how much water surrounds it and how poor the city's storm drainage system is.
I'm with you: Florida real estate is the best real estate!
Hope this brought you some confidence
@Dana Walker , I think the key in buying storm damaged/water damaged properties is to get in there and get it cleaned up before the mold sets in...just my two cents. With our climate here in Orlando, you can bet on mold setting in quickly.
We have a rule to not buy any of our buy/hold rentals in a flood zone. But for a flip I think hurricane damaged homes make sense. I actually just walked through two flood damaged homes in Bonita Springs.. they were more work than we could take on but the numbers worked on both of them.
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