Why do investors buy flooded homes?

Question

I'm curious why investors would want to buy a flooded home? Here in Houston we are seeing a demand (still small, but growing) for flooded homes. I wholesale and rent, but I'm confused why someone would want a home that has flooded. Even more confused why someone would want a home that was flooded more than once.

Matthew Paul · Answer

Buy it cheap , fix it to the minimum standards , rent it for as much as you can .

Daniel L. · Answer

Buy at an incredible discount. Rehab and sell. When was the last time we saw a natural disaster of this magnitude in Houston? Life goes on. There will be people moving out of the city and there will be people moving into the city. Offer and demand!

Fred Heller · Answer

"There's a sucker born every minute."   -----attributed to PT Barnum

Ryan Jones · Answer

Maybe my question is not clear enough. What is the exit strategy for a flooded home from an investor's perspective?

Michael Plante · Answer

Is it true that if a house floods but is NOT in a designated flood zone a bank would require flood insurance?

Rex T. · Answer

You may be able to buy them cheap, especially from people without proper insurance, but.... you probably would need flood insurance on the purchase if not cash  purchase...and if you try to sell later to someone financing... they would need flood insurance if even feasible ... watch out

Tristan S. · Answer

@Ryan Jones I would love to know too but it seems like people have a short memory, which is why they would be willing to buy houses that flooded in the past.

Why do investors buy flooded homes?

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