Concerns about rehabbing a flood damaged house?

[Greg S.]

Hello everyone. I am a beginning real estate investor from NJ and am currently mailing to probates and out of state owners. The area I live in was pretty heavily hit by Hurricane Sandy. I'm about 5 miles from Seaside, where the roller coaster still juts from the ocean (if you've seen it on the news).

Many of the houses I'm receiving calls on have flood damage. I have an appointment to see a house this Wednesday. It is an inherited house, currently vacant, and had about a foot of water in it during the storm. The owner is starting to feel motivation, since they do not plan on making any repairs, and know they will have to take a cash price for the home.

I plan on taking pictures and/or video of the home on Wednesday, so hopefully I can get some assistance with estimating the repair costs. If it is a deal that I plan on pursuing, I will bring in multiple general contractors to give me quotes on the work. I also am going to give my realtor a call so she can provide me with some comps .

To be proactive, I wanted to get everyone's insight as to what I should be aware of with flood damaged homes. Is there anything in particular I should look for as I'm inspecting the property? Also, I assume this property will require flood insurance, which from what I've read is pretty expensive. In your experience, how will this affect my ability to sell the property?

Thanks in advance for all of your help.