Dayton Tornados-How does that affect investors?

6 Replies

I'm a newbie, still learning and hunting my first deal. I was just curious how does a natural disaster affect real estate investors? Is this a good time for investors or a time to chill out? I don't want to be insensitive to anyone affected by it, so I've been kind of chill for the past week. Has any of you experienced a natural disaster in your area, and how did it affect you as an investor?

HI carmen I do a lot of work in Dayton  we have our own contracter there, we are  working hard to move up projects and get as many rental units on the market as possible because there is a shortage and many displaced peole.. they are going to need funds including investment funds to rebuild the city. We are also puting in time to help with clean up and donating where we can.

It depends on specifically what was affected by the disaster. We sold our investments in the Dayton area (and they weren't affected anyway), and just purchased a small apartment complex in Sevierville, TN. That's a short distance from Gatlinburg, where the 2016 fires destroyed a lot of workforce housing. A lot of that has since been rebuilt, but since it's new, it's now class A, and rents for much higher prices. Our class C apartments are now some of the few in the area in their price range, and there is a waiting list for them. If you look on Zillow for rentals, there's very little inventory for any price. Granted, the disaster was over two years ago, but the low inventory situation would have been even more pronounced in late 2016- early 2017. 

We were also looking to build a new house in the area in 2017, and it took us a year to find a builder who wasn't trying to gouge us on price. They just didn't need the business with all the insurance work to do.

A lot of areas by me got hit pretty hard.  Thankfully, I had only a few houses with damage, mostly to roofs and siding.  A bit of tree damage and cleanup as well.  On one of my car lots we lost a truck after a tree fell on it.  All in all, incredibly fortunate.  Trying to donate some to people around who weren't as lucky as I was.

For some reason it seems some of our least prosperous areas got hit the hardest, and that really sucks.

Those #[email protected]% tornadoes tried to suck up all my houses including where I live... but failed! Only a few knocked down trees and limbs - no damage to the structures. Speaking for the trotwood and harrison township areas, things would have been a lot worse had the place not been so well built to begin with. It tore through the north dixie corridor with a vengeance. That area probably could have used rebuilding anyway, though.  The only place I know that is completely gone was a strip club. A  lot of people are saying God had a hand in that. Contractors and rehabbers may be tied up fixing the damage and I see this driving up rents and prices throughout the dayton area. Fortunately, there was a small army of people working on Dayton already. So, it should not take too long. 

Housing supply is short, it was already short and now there are about 600 families without homes. This drives rental prices up. There is also a labor shortage for roofers, tree companies, landscapers, etc. I don't think any of us are weighing positives and negatives of the disaster yet, still just trying to make it to the next day. Several of us got hit personally at our homes and offices as well as our rentals. It's a big mess to sort through and the only way to know the effects it had will be to look back and evaluate.