Renovated after flooding Multifamily Property
Hi All,
I am looking at a 11 unit property that was recently flooded after hurricane Harvey and was renovated after the flooding completely down to the studs. New Roof, new floor, new walls, everything, Would you suggest going ahead with the deal? Or should I leave it due to it being flooded before? It is still not under a flood zone per FEMA so flood insurance will not be required.
Any help is greatly appreciated.
Thanks
Most Popular Reply
Harvey was a 1000-year flood, so the likelihood of this property flooding again is low if it was previously in the 500-year flood zone. That said your insurance will still probably be really high. Try to get the full financials from the 12 months prior to the floor. But being such a small property I'm not sure how well documented it was so you might have just have to come up with your own proforma numbers. If the property is vacant and you will have to lease it up make sure you get compensated for it at least and are not paying for a fully occupied property.