Rehab cost on a flooded home

[Habbak Burs]

Hey BP,

I’m looking at a couple properties in Houston TX. They are flood damaged.... home has been stripped down to studs....

In this type of situation what would rehab costs generally be? This would be my 1st rehab

I know that everything depends on the condition but what I’m looking for is does a full home rehab like this generally run 30K or more like 100K that way I can analyze some numbers to see if it’s even worth going deeper into it....

Any advice would help

Thanks

[Andrew Taylor]

We're working on one now that's got about 2,000sf of first-floor area. It was gutted to the studs when we bought it, so no demo/cleanup costs to speak of. Our budget is $125k and we will spend every bit of that and then some.

This is on top of the $50k the seller had to spend doing mold remediation prior to closing because he didn't leave the HVAC running when he moved out after Harvey.

I would advise against making a flood house your first flip, but if you're going to do it, have a mold inspection done BEFORE you agree to purchase. Get your mechanical trades over there to tell you what's going to be required (lots of times you have to upgrade what's there, not just replace what got wet).