Wilmington, NC · Member since 2018 · 26 posts · 5 votes
Hurricane Florence has come and gone as I write this from ground zero Wilmington, NC. I'm curious as to where the BP community thinks the best opportunities are to be had. I would think that short term prices would suppress on SFH's but from a little bit of online research about the RE effects of other hurricanes, that seems not to always be the case as demand goes up as rescue money and recovery related personnel pour into the region. I had been looking at "buy and rent" opportunities with condos and apartments, and on the one hand perhaps prices go down as less people want to live in the area, perhaps prices go UP as people still want to live in the area, just not in free standing homes? What do you all think?
Rental Property Investor · Raleigh, NC · Member since 2017 · 157 posts · 169 votes
8y
@Brock W. That's a great question! I was actually wondering the same. In some cases i have seen rental prices going up after floods as many units are not livable or need repairs so if you end up with a property that was not damaged, you might see some short term higher demand and price increase. I think logically, if the inventory goes down (due the the storm damage, etc) the prices will go up for the reset of the properties that were not effected in that area.. I would think, on the other hand, those effected properties will have a signification price / value drop so you might be able to get some from those who just don't want to deal with that or just walk away.
I'm a long term investor (10+ years) so i would worry about global warming, sea level rising, stronger storms and more flooding so i would probably avoid areas that was historically effected or might be effected in the near future. I don't even purchase properties near rivers, faraway from 500 year flood zones. Since in the past 10 years, you see those type of storms / flooding more and more.
I would also worry about the insurance price or having to need a flood insurance or even not begin able to insure the property at all.
Bottom line, costal living is still a dream for lots of people and if you are willing to take on the risk, then go for it. I'm not that type of person.
Investor · Wilmington, NC · Member since 2014 · 128 posts · 38 votes
8y
I live here in Wilmington and have been investing for 8 years. As an overall market I have not seen storms change the market. You may have some one offs where certain investors bail out. I’m always looking for opportunities so if you run across any and I can help please let me know.
Rental Property Investor · Raleigh, NC · Member since 2017 · 157 posts · 169 votes
8y
@Brock W. That's a great question! I was actually wondering the same. In some cases i have seen rental prices going up after floods as many units are not livable or need repairs so if you end up with a property that was not damaged, you might see some short term higher demand and price increase. I think logically, if the inventory goes down (due the the storm damage, etc) the prices will go up for the reset of the properties that were not effected in that area.. I would think, on the other hand, those effected properties will have a signification price / value drop so you might be able to get some from those who just don't want to deal with that or just walk away.
I'm a long term investor (10+ years) so i would worry about global warming, sea level rising, stronger storms and more flooding so i would probably avoid areas that was historically effected or might be effected in the near future. I don't even purchase properties near rivers, faraway from 500 year flood zones. Since in the past 10 years, you see those type of storms / flooding more and more.
I would also worry about the insurance price or having to need a flood insurance or even not begin able to insure the property at all.
Bottom line, costal living is still a dream for lots of people and if you are willing to take on the risk, then go for it. I'm not that type of person.
Rental Property Investor · Carolina Beach, NC · Member since 2017 · 441 posts · 462 votes
8y
I live in Wilmington and currently do all my investing in Fayetteville, NC. The only thing i've seen is rental rates go up for a short period of time. I'm assuming we will see an increase in foreclosures for a short period but there are very few here in Wilmington and the competition is crazy. I'm going to stick with Fayetteville.
Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes
8y
This just came out from Black Knight regarding the impact from Hurricane Florence.
Just like what we saw in Florida from IRMA last year, there will be many homes that will go into pre-foreclosure soon as people will not have the correct insurance to protect against flood waters.
@Brock - Wait and see after 90 days, I think you will see a lot of Pre-s soon. Just in time for the holidays too. Sad.
Wilmington, NC · Member since 2018 · 26 posts · 5 votes
8y
Joe, Thanks for the response. Was that rental rate uptick in Fayetteville or Wilmington?
Steve, appreciate your input! I'm a native as well, and have seen storms going back to Hugo in '89. I would agree with you thus far, I'm wondering if Florence will prove different, as this is the worst I've seen it.
Rental Property Investor · Carolina Beach, NC · Member since 2017 · 441 posts · 462 votes
8y
@Brock W. I'm assuming we will see an uptick in both locations for a short period while the displaced individuals look for temporary housing until insurance can fix their properties. A supply and demand type deal for a few months then it will all get back to normal.
Rental Property Investor · Southeastern, NC · Member since 2018 · 163 posts · 146 votes
7y
I have posted in other threads, but generally be very careful about purchasing flood damaged homes. If you need assistance with due diligence feel free to PM me.
Investor · San Diego CA · Member since 2014 · 341 posts · 139 votes
7y
I am currently doing hurricane florence work in Eastern NC. I was wondering some of the same things. I have been watching closely. It appears that over half the houses in the Crystal Coast area have been removed from the sale market. However, I just got a place under contract for 392k. The tax value is 620k. So something is up. Maybe its a 1 off like mentioned before.