Flipping a house in a 100-year floodplain

[Lukas Vanagaitis]

Hey everyone,

Is there anyone flipping flooded houses in Houston?

We are about to close on a deal in a 100-year floodplain. First time flood, got about 3-4 ft of water. 

Purchase Price - $130k, Repairs $30k, ARV - $235k. Flood insurance - $1,900/year, Property Taxes - $6,200, Rent ~$2,000

Numbers are great, but should a 100-year floodplain be a big concern? 

Is there any chance we won't get a permit to rebuild, or what are the chances that we'll be required to raise the house up? Any advise from experienced redeveloper would be highly appreciated.

Thanks guys 

[Fred Heller]

I'm very suspicious of your repair estimate of $30,000, especially if the home got 3-4 feet of water. I was looking at some flooded homes for my clients and the estimates I received from different contractors were in the $58,000 to over $60,000 range.