How are you investors in Flint doing in the water crisis?

Question

As many of us know, it's an unfortunate incident that happened, and something that nobody can really take into account. Is it something us investors can prepare for?

Anyways, I'm wondering how you guys are doing, and if there are any lessons to be learned from an investor homeowner POV with this state of emergency?

Felicia Jackson · Answer

The situation in Flint, Mi is very sad. It extends well beyond the current water problem. The water has been an issue for two years, but has recently gained national attention. People are moving out of flint. As an investor in the Mt. Morris area, I am personally expecting the housing market to increase in the surrounding cities.

Account Closed · Answer

As you mentioned it is an unfortunate situation and unexpected. But from a residents POV we all still have to live so we continue as usual just taking precautions and measures to ensure our families are following safety procedures using filters and bottled water for consumption as much as possible. From an investors POV homes are still selling people are still buying and with tenants we make sure they are taking precautions and have supplies such as filters that are being provided. With national coverage and assistance pouring in from the state and federal levels this may well be a turning point in a renaissance for our area that will ultimately be better for us in the end In my opinion.

Scott McMahan · Answer

I live in downtown Flint and I love it. We have 6 kids and the baby is the only one with elevated lead levels, although it is still considered in the "safe" range. I think it's from lead paint, not the water. Before we moved into the house in May of '15 we had a water filtration system installed, as it was clear at that time that there were problems with the water, although we didn't yet have the national headlines.It's easy (and a little condescending) to say that the people should just move. This area has a great culture of hard working and (mostly) honest folk who have been here for generations, seeing some pretty sad changes in the last decade or so. I think Flint has a bright future, with the local colleges and universities continuing to grow and signs of nascent job growth.As an agent, I've spoken to several prospective tenants and buyers in the last couple weeks who prefer a property that is not on city water or want a filtration system. This presents an opportunity for investors, as a house with an effective filtration system will attract and keep tenants and potentially command a higher selling price with fewer days on market. Like Clarence said, life goes on. If our policy makers can focus less on blame and hair-brained conspiracy theories and more on solutions it'll get resolved faster.

Jeff G. · Answer

I'm originally from Flint, MI and I can speak to this. There are many residents of Flint who have never left the city. There are two barriers really. Some people can't afford to move. In other cases it's because there is a psychological barrier: there are more than a few residents of Flint who have never lived anywhere else. Hell, some of them have rarely if ever been outside of certain parts of Flint. It's all they know. As a result, even when opportunities arise they're afraid to move: they'd be a fish out of water anywhere else.

Leigh C · Answer

@Michael Biggs Government Conspiracy theories must be working into the night on similar theories... Totally ignorant thought here...but people there realize they can leave...right? I realized a few years back I'm allowed to move anywhere i want, so i moved to the FL Keys where sadly my water bill for 3 of us is over 200 dollars usually.

Mark Yuschak · Answer

As already stated, there really isn't much change from a tenant/investing perspective. Tenants still need somewhere to live and with rental prices significantly higher outside of the City, the tenants have really no other options. As a result, we're seeing them stay put and coping with the situation.If anything, this is now a great time to buy since the media has scared so many people away from the City.

Account Closed · Answer

@Leigh C I am with you. I have no idea why the people do not move. That was sort of my point.

Account Closed · Answer

Actually, the area will have problems for decades from the lead. Overall the children that drank the water will have lower IQs than they normally would. Overall they will commit more crime than they otherwise would have. Overall they will be more violent.Other places have basically been trapped for decades in a cycle of high crime and underperforming school because of lead. I am thinking about lead smelters in South Dallas in particular. As one of the doctors in Flint said... it would be hard to find a more potent toxin to keep a community down for generations than lead.

Timothy Farrell · Answer

It might be a good time to invest.There could be substantial money inflow to try to stem liability.The lawyers and their teams will need places to stay while recovering money for those who have damages.Settlements will probably be offered but many will sue.I hope to see a great restoration and revival in Flint.

Ashley Andrews · Answer

Agreed with @Mark Yuschak. Not only do we have an issue with the safety of the water, but the City is in litigation for the water rates since raising them in 2012. The average water bill on a monthly basis currently is around $120 per month for a family of 4 in a SFH. And that is with the rate being lowered once since the action has started. Hopefully, with all this acknowledgement the City can make it right.