Floodplain, Tear Down, Rebuild Questions
BP Community...
I've tracked down a prime piece of land in a coveted neighborhood in Austin, TX. There is a vacant house on the land that that is a tear down. Discovered the land is in a flood plain in conversation with owner (who wants to sell). I want to work through the numbers to see if this is an opportunity. Here are my questions:
1. What questions / concerns do I need to consider since the property is in a flood plain? Is this kind of opportunity too risky for investors?
2. Where do I get info on costs to tear down in my market?
3. Is there a rule of thumb for cost per square foot to rebuild?
I'm learning all I can in this space and would appreciate any advice or recommendations on the way forward. Thanks!
Most Popular Reply
My first real estate mentor tried to do a tear down and new build on a flood plain in 78745 just over a decade ago. The city gave her the go ahead to demo but once it was time to start building they shut her down. She got rope-a-doped. That lot is still undeveloped to this day.