Why do investors buy flooded homes?

Why do investors buy flooded homes?

Houston, TX · Member since 2017 · 2 posts · 1 vote

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.

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New York City, NY · Member since 2016 · 420 posts · 172 votes
9y
Because they could get them for very cheap.
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  • Rental Property Investor · Boone, NC · Member since 2015 · 291 posts · 88 votes
    9y

    @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.

  • New York City, NY · Member since 2016 · 420 posts · 172 votes
    9y
    Because they could get them for very cheap.
  • Wholesaler · New England · Member since 2015 · 40 posts · 21 votes
    9y

    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

  • Houston, TX · Member since 2017 · 2 posts · 1 vote
    9y

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

  • Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
    9y

    "There's a sucker born every minute."

      -----attributed to PT Barnum

  • Dallas, TX · Member since 2016 · 37 posts · 10 votes
    9y

    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!

  • Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    9y

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

  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    9y
    Originally posted by @Ryan Jones:

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

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

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