Regarding 'damaged' properties

[Santhosh Ramani]

Hi BP folks - 

Seeking options/opinions from the forum here.

I am a passive real estate investor & I own a property near Little Rock , AR. This property was almost completely destroyed by the recent tornadoes. I'm waiting on insurance's final decision.

In the meantime, I wanted to understand what are my typical options here? Unless forced to do so (by insurance/lender), I would prefer to exit this investment, given my limited bandwidth. 

Thanks,

Santhosh

[Hadar Orkibi]

One of the options you have is to get the I insurance money and sell the property As-Is where-is.

It's common in disaster-strike properties. Depending on what is left of the house, you may be able to come out better off this way while not dealing with the hassle of rebuilding. 

I bought many houses in Chch NZ after the 2010 Earthquick, repaired them, and then rented them or sold them. Many sellers do not want to deal with the repairs and juts want to move on.

With the recent tornado, it's a different story, especially if the whole house got ripped off, etc. Then the house maybe works Land value...

Feel free to DM me. I know LR pretty well.