Houston flooded home flips?

Question

Harvey flooded houses (especially 1st time floods)... To flip or not to flip? Are you guys having any luck rehabbing flooded houses and selling them pretty easily?

Jodi Gauthier · Answer

I’ve flipped two first time flood homes and sold them at 100% pre-Harvey ARV. I think it depends on location, quality of rehab work completed and if the home was properly remediate (TDI certificates, etc.)

Keith C. · Answer

Congrats Jodi,

Sounds like you got a deal and times it right

Hillary ,

I’ve been listening ok’ing at flood deals for a while now , from the deals that came my way the wholesalers are looking for 60-50% of the ARV , that doesn’t leave you much room for error , market correction or stigma of a flood home even in a good area .

Take off 10% for commissions, legal  & closing on sale , you are looking at best a 12/20% return on investment .

Now imagine if the mold situation comes or contractor goes over budget , you may be stuck holding a wet bag

If your plan is a rental than at least you have a plan B in place

For the best upside of 20% I’d stay clear

Of course if you can purchase at 35/45 From ARV that may be worth considering

IMO the Flooded homes are going to be in the market for a while - based on the fact many owners are just hanging on and not paying mortgages . At some point the reckoning of all those outstanding mortgaes and taxes are due - where there will likely be many foreclosures / short sale or other distressed situations on the market

Rachel H. · Answer

I'm sure there are investors who are buying them up. Though, they may have the crews necessary to fix up the homes with extensive damage. If you've got the experience and can tackle these types of projects, you may want to start out with one and see how it goes. Or, you can always find a partner with experience and go from there. If you venture into the area, I'd be sure to get appropriate insurance coverage (i.e. wind, flood, etc.) just in case it happens again!

TJ Johnson · Answer

Reviving an old post looking for information on flooded houses in Houston. @Hilary Hill did you end up going all in on a flooded flip?...How'd it work out if so?  There seems to be a handful of partially fixed Harvey homes in my area, the south side of Houston.

@Jodi G. have you continued with these similar flooded flips and finding good results?

Houston flooded home flips?

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