Texas ongoing bad weather

[Hersh M.]

Floods, flash floods and tornado warnings in most parts of Texas seem to be all over the weather news currently. Looks like its all over including Dallas, Austin, Houston, San Antonio. Hopefully things get better from here. 

My question to experienced investors is do these events affect your criteria for selecting locations in any way for your future investments? Will there be revised flood maps? Any other things to look into in regards to such weather events?

Also do the insurance rates go up after this or such events are not so uncommon?

Thanks. 

[Chad Benedict]

I'm not trying to downplay the impact on those individuals who have lost a home (or worse) in the weather this year, but the media often makes it sound apocalyptic, which it's really not. Insurance rates may go up, but that can happen anywhere. There are earthquakes, fires, and mudslides out west. Drought in the southwest. Hurricanes and heat in the south and east, and even in New York. Nine feet of snow in New England. Bad weather isn't limited to one area of the country. You just have to factor that into your numbers on any deal and whether that affects insurance rates, cash flow, property value, etc., and then make sure you buy it at the appropriate price.

I just looked at two houses, both built in a 100-year flood plain behind a creek (although they have never flooded), and I adjusted my numbers based on that. Didn't get either one as the homeowners wanted too much, but that happens.

Now would I buy a house or lot that had already been destroyed by a flood once before? Probably not, but I'm sure there are investors who would.