Has anyone experienced ever flipped a flooded house in Houston?

Question

Does anyone have experience with flipping flooded houses in the Houston area? I’m in need of some insight. I’m told I need a mold certificate from my realtor but the testing company only provides a report??

Scott Mac · Answer

If you flip a flooded house all of the water will run out as soon as you turn it over.

Andrew Taylor · Answer

I would for sure think twice about buying something that floods every time it rains (ahem, Meyerland), but stuff that flooded during Harvey ain’t tainted. When it rains 50” over a weekend, stuff is going to flood.

If you’re not buying anything in the Houston area that’s ever flooded, you’re significantly reducing your pool of potential deals.

Andrew Taylor · Answer

A mold certificate is a specific, official document provided by a state-licensed contractor. Anything else is akin to a receipt signed by the sales guy at your local ServePro. To get one, you typically have a testing outfit come to the house and test for the presence of mold; when they find it, you have a licensed mold remediator come out and write a scope of work (this is an official - and expensive - document); then they come out and do the actual remediation work; then they test again and either issue the certificate or repeat the remediation process. Last one we did took several weeks and cost upwards of $40k.

You are not required to have a mold certificate, but if you're flipping a flooded house it'll probably help you come resale time. It'll give potential buyers peace of mind that the remediation was done properly.

That being said, if you're near the end of the rehab process, you're better off forgetting about it and moving on. It's an extensive, expensive process that really needs to happen before you start work, not at the end. It's hard to scrub mold off the studs if the house is finished 😎.

Christopher Hill · Answer

I'm not an experienced investor by any stretch but when we bought our house the previous owner had a mold company come validate that mold was not present. The house was flooded and remediated previously. My inspector also had a mold license and informed us those mold tests can actually be very simple and somewhat flawed as they come in with a handheld machine that senses moisture or whatever. Point being, you may be able to find a company to do the test only and produce that piece of paper if you really want to look like you covered all the bases. But otherwise I don't think there are any hard/defined rules that prevent someone from buying a remediated house if they want it (I could be wrong).

Jodi Gauthier · Answer

I have flipped several and have got TDI mold certificates on all but as mentioned above by @Andrew Taylor it is something you do when it is still at the studs, not after rehab.

Drew Holland · Answer

@Jesse Littrell Flood rehabs costs in Houston for 3x2 ranch are approximately $120-$150K from what I've seen. @Andrew Taylor is absolutely correct and rehabbed flooded homes are selling for more than their non-flooded counterparts.

Jesse Littrell · Answer

@Scott Mac hahaha thanks I’ll keep that in mind.

Mark Sewell · Answer

Short memories here - I remember some of the local big names here saying this would be the case right after Harvey. My major concern is those areas that flood all the time anyway, in the spring, not during major hurricane events.

We moved here in 2008 and I know for certain that Bear Creek has flooded 4 times now including Harvey - witnessed it. Now to your point @Andrew Taylor I see those things selling for top dollar (Katy schools, lol) and I just cannot get my head around this.

I guess I would understand if those houses are raised significantly - and I think there is a requirement to do so in some areas like around Braes Bayou in the Meyerland area (could be wrong).

Christopher Hill · Answer

Sorry but this just isn't true. Literally all the flooded houses along the bayou have been remodeled into even higher-end luxury housing and are selling with no trouble at all. Maybe you are referring to some of the neighborhoods built on the back of the reservoir that weren't particularly nice or desirable to begin with.

Andrew Taylor · Answer

Actually flooded houses that have been remodeled are selling for more than non-flooded houses. They've all been upgraded, vs. older non-flooded houses. If I could remember where I saw that stat I'd link to it.

Has anyone experienced ever flipped a flooded house in Houston?

Has anyone experienced ever flipped a flooded house in Houston?

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