Blow Me Down! Climate Change Coastal Investments

[Gayle Eisner]

Greetings fellow investors.

Climate Change is a topic that is not discussed enough on this forum. 

I have a couple of rental properties in the Monterey area that are about a block from the beach.  Great rental income, great location, great tenants.  I have been increasingly anxious however, due to the proximity to the ocean.  Last year was, in my opinion, not a once in 100 year occurrence.  Power was down, homes and businesses damaged and closure of highways.  This year, again, extreme damage to businesses has occurred in Santa Cruz, CA (near me) and winter has just begun.  I was thinking of selling and doing a 1031 exchange to a "safer" location.   Ideally, I would love to keep the rental properties but the possibility of losing these assets is of great concern.  Both are paid off.  Rumors in the area are that insurance companies will be pulling out and I will be stuck with the expensive, minimal government insurance.  

Questions: Has anyone experienced this same situation or have any advice on new investments still in CA?  

Thanks kindly! 

[Glen Wiley]

I prefer states that are landlord friendly - for example in Virginia you can evict for non-payment and usually get a judgement and possession in a few months. CA - not so much.

Climate change? Whatever. The last time I looked all the wealthy climate change lunatics are buying houses on the coast and places that they say will be underwater soon. Actions speak louder than words.

Insurance costs are a REAL problem though - we decided to back away from Florida due to the risk of climbing insurance rates.