I've been checking out real estate markets in the Texas Gulf region such as Corpus Christi, Victoria, and the RGV. Is it a good idea or bad to invest in those areas of Texas because of hurricane season and flooding? I understand there are flood maps on the FEMA website and the need to buy flood insurance. I am interested in rentals not flipping in those markets.
There is no good or bad investment, it just depends on your goals, the price you pay, the time into the project and the return for your time/money.
I live in Corpus Christi, but do not plan on investing on the coast. I was here when Harvey hit just to our north in Rockport. I have seen first hand what a storm can do, it ain't pretty. To all those that say "that's what insurance is for" I laugh at them.
Insurance is great, but just wait until you have to deal with them, they are quick to take your money and slow to pay out in a large disaster area. Also, consider that even if your properties take little damage in a direct hit area the city will basically be out of commission for 12-24 months. Rockport which took the brunt of Harvey's winds is still a mess. It's just now barely starting to resemble a town again 14 months later. So, even if your properties take little damage, the infrastructure is wrecked for many months. Think 9/11 style damage. You think Mexico Beach will be back on its feet anytime before 2020? Think again!
All that said, this is a fairly hot market and a booming economy with plenty of homes in need of rehabs and renters.
It's up to you, you could go 25 years with no storm, or get one a week after your first purchase. They don't call it investing because it's easy.
I live in Galveston and vacation rentals do very well here if you know what areas to buy in. As far as hurricanes and such, with chaos comes opportunity. Many people are done with the area after such an event and collect their insurance proceeds and move away leaving a lot of great rehab deals on the market.
The other advantage in Galveston is that the city has done a great job of hosting events throughout the year. This means well located rentals can do well all year round instead of just the busy summer season. I am just selling an AirBNB property (need the funds for another investment) right on the Seawall that was not in a floodzone! House is over a hundred years old and never been damaged from a storm. Not saying it couldn't be but it all comes down to location.
I went down to Rockpot a few months ago to check out a "fortified home" from Deltec that is Cat 5 rated. I may build a few of those, including my personal home, to use as short-term rentals.