All Forum Posts by: Mark Sewell

If you buy the land, have some kind of plan about what to do with it.  I think everybody here agrees that just 'holding on to it' for some amount of time, hoping it appreciates in value, is probably not a great idea -- at least not when compared with other opportunities where you could earn better/more proven returns.  

However, I'll say this -- you could potentially partner with somebody that builds, and that doesn't have to be MF apartments or even residential at all. It can be industrial space (workshops, garages, etc.), or it could be mobile home parks. Investing in mobile home parks is a whole subset of the REI world all unto itself, and it is one that I am keen to learn about myself one day. It could be other things also. But here again, I wouldn't go this alone -- you'd need to get in with some other experienced folks there locally that could help you along.

It is telling that somebody somewhere decided to even  take it upon themselves to gather this 'exodus' data by county.

Another good point here, by Mark S - flood plain management is a big deal around here, and as you can probably imagine, they got national attention during Harvey.  So these days, you don't have to drive very far in Houston to spot crews of local dirt contractors out there widening/expanding/improving bayous, creeks, ditches and what-have-you.  

As a result of all this mess, the flood plain maps have all been redrawn.   

And my thought is, now with all this new work being done, I doubt anybody would even know where the water will go, when the next big one blows through.  They experienced that over in New Orleans, when the city levy work all held up just fine but the flooding happened upstream, in places like Laplace and Reserve.

I did a flip on a house off Westheimer & Eldridge, and I was required to buy flood insurance. Never flooded at all, not during Harvey or prior to that - or at least, as far as I was aware. Then after a few months, I received some notice from FEMA, that there had been a claim, back in 1981 (house was only 3 years old then). The house backs up to a bayou, so not surprised. But this is more evidence that continuous work by Army Corps of Engineers and Harris County Flood Plain management, and who-knows-what other agencies, is having some impact. But all that water has to go somewhere, and who can say where it will go next time?

It is all federal backed coverage, and so insurance agents hardly make a nickel on this stuff.  So there cannot be that much variation in rate.  Any difference has to be amount of coverage, and deductible, as @Tony Castronovo points out.  

With flood insurance in particular, I don't think you need to insure for the full value of your house.  Somebody correct me if I am wrong here, but the idea is that you are buying enough to cover the amount of damage you might incur.  So if you have a $200K house, you don't have to have $200K of coverage -- $100K would be more than enough to pay for any repairs -- plus whatever amount of insurance to replace contents/belongings.  Of course, lenders might have their own requirements on that, if the property is financed.  But if it is not obligatory, I still say having some flood insurance is a lot better than having none.

I think that first zip code is 77084, correct?  Over here on the west side?  

These look like pretty good deals, with the obvious exception being your rehab numbers -- those are crazy low, unless you are just throwing in paint and new flooring, in part of the house only.

You can save money on certain things, like maybe a painter or a landscaper.  But HVAC and plumbing, those are expensive fixes when something goes wrong.

Make that 2 guys named Mark S from Katy TX that strongly recommending getting flood insurance.

Actually I didn't have it, never required to have it, and was never affected -- but damn was I worried!  So now I'm getting it before hurricane season rolls back around.

Interesting -- I have a buddy in Lufkin that does this.  

@Brian Foster Amen brother.  This is where it is happening (from another transplant from out of state).

What a great question.  Wish I had a comprehensive answer.  Inspectors will write a 75 page report at the drop of a hat.  As a seller, it is terrifying.  But no house is perfect, even after a full renovation.

I would say the inspection is more about revealing defects that are EXPENSIVE to rectify.  Just about everything can be fixed, but it is a matter of cost.  But turnkey sounds like the serious stuff should have already been done.

Are you seeing evidence of major problems, like foundation issues, leaks, or mold?  Anything that would suggest electrical and plumbing are not up to code (old)?  Any potential safety concerns that could get you sued by a tenant?

Other more experience folks can offer a better response.