Posted by Sailor on June 15, 2006 at 16:19:16:
Sorry, didn’t mean that as a real ad!
Tye
found a house that is in flood plain - Posted by Trish
Posted by Trish on June 14, 2006 at 17:54:00:
ok, i have found a house that is in a flood plain. talked to owner, he has owned it for 26yrs. it has flooded five times. no more than 30". the house is 7 1/2’ abouve sea level. It looks to be about 40k below market. I am going to look at it. My question; This is in houston area, should I even bother with this? I am intending to assign it. Would an investor have a snowballs’s chance in XXXX to flip this or l/o it? And how would disclosure work? per owner it only needs new roof. all other structural is sound. I know i need to check myself but the flood area is what i am worried about. I wouldnt care about a flood area, i would just get insurance; but i dont know if a homebuyer would agree. thanks for the advice in advance.
Flooded five times in 26 yrs? - Posted by george
Posted by george on June 16, 2006 at 13:35:59:
Forget about flood insurance. Once the home is certfied as in a 100yr flood plain, insurers only insure on a case by case basis. Five times in 26yrs? You gotta be kidding!
I have a friend who bought two homes in similar situations. Each was assessed around $80k, he bought them needing flood damage repair at around $20k, put another $10k in repairs. He gets good rent from a low investment.
Only problem is they are uninsurable, so he just figures this into the equation. Repairs were made in anticipation of a reoccurance, doing things in a manner that would be least expensive to repair.
george
Flood Insurance is transferable - Posted by Carter
Posted by Carter on June 16, 2006 at 10:45:05:
Check to see if the seller has NFIP insurance right now. If he does, the insurance is transferable.
NFIP - Nat’l Flood Ins Program - Posted by JT-IN
Posted by JT-IN on June 15, 2006 at 01:21:04:
Trish:
You should know whether the current owner has ever bought flood ins…? If not, why not…? Any lender who is going to consider making a mtg on the property will require the borrower to have Flood Ins… hands down. You will need an Elevation Certificate, which you will obtain from a surveyor… They will likely need to do a survey and map out the property using the 100 yr flood plain maps, showing what the likelihood of the property being flooded, so that a risk assessment can be determined. You will be able to buy the insurance, it just comes down to the cost of doing so… You may consider buying and paying for the 1st yrs premium of the flood policy along with the purchase. The existence of the flood plain will certainly make the property harder to sell, and it may not bring the price it would as if it weren’t in the flood plain… sans the insurance costs…
You can read up on the requirements of the program at the link below… Good luck, but you are being wise to assess all the potential pitfalls of that the flood plain will present, prior to inking the deal…
http://www.fema.gov/plan/prevent/floodplain/How_the_NFIP_works.shtm
Re: found a house that is in flood plain - Posted by Sailor
Posted by Sailor on June 14, 2006 at 19:16:41:
As someone who has been flooded 3 times, I can assure you that insurance does not cover damages, time, or hassle. Oh, yeah, & then there are the water mocassins–
Tye
Re: found a house that is in flood plain - Posted by LK
Posted by LK on June 14, 2006 at 18:08:19:
What is FMV or ARV?
$40,000 on $80,000 is good. $40,000 on $400,000 is not.
Re: found a house that was plain flooded - Posted by Cletus
Posted by Cletus on June 14, 2006 at 22:37:02:
Tye,
I hear ya on the water moccasins. I wear those all the time instead of shoes in my house. Not the water ones though, only the dry kind. Didn?t know they had em for wearing in water. Where did you get them? REI? Do they hurt your feet? It seems like you don?t enjoy them. I wonder if Nike has those?
Cletus
Re: found a house that is in flood plain - Posted by trish
Posted by trish on June 14, 2006 at 18:23:04:
There is only one comp in the same zip code. it is a year old. 170k. I went to realquest.com for it. I also, went to zillow.com and house is valued at 125k; but I know that is not very accurate. I don’t know where else to get comps from. tax assessor has it for 122k. but i know that is not always accurate either. It’s in flood plain, my next step is contacting a realtor to see what market value in that area would be, wouldn’t it? I am sure the owner is not in a hurry. Not like many offers are on his table. i am thinking, write an assignable contract with at expiration date and try to get it out there to let investors see. Owner knows that I am looking as an investor not homeowner. I would bet that I have to get offer lower than that. 89k is his asking price. I am sure I could get it lower.
Re: found a house that was plain flooded - Posted by Sailor
Posted by Sailor on June 15, 2006 at 07:28:41:
If LL Bean is out, you can always find s pair in my creek playin’ w/our gator (now up to 10 feet) or under the house. They don’t usually come inside unless the water brings them. I did get a viper in my pantry a few years ago (thought it was a rat until I realized how big that tail really was. I did get a VERY clean pantry out of the experience, after the blood was cleaned up).
Hope you & John are coming back to Boot Camp in August. If not, it just won’t be the same w/out you guys–
Tye
P.S. Anybody wanna buy some beautiful waterfront property?
Re: found a house that is in flood plain - Posted by LK
Posted by LK on June 15, 2006 at 04:56:22:
The post by JT summed it up well. I have a rental property that I purchased without knowing it is in the flood plain. I found out 2-3 years later when I re-financed. I had to do just what JT described. The annual premium is about 1% of insured value. The difference with my property is that it is very unlikely it will ever flood. It just shows up in the flood plain on the NFIP maps which I believe are inaccurate in that particular area. But, it cost more to have the maps amended than paying the insurance.
I would worry about the retail resale potential since you will have to disclose the flooding issue. Finding out about the wholesale potential before you commit and getting it at a real good price is a good idea on your part.
Re: found a house that was plain flooded - Posted by Natalie-VA
Posted by Natalie-VA on June 15, 2006 at 10:44:06:
Hi Tye,
Are you selling out? My husband is from NC (mostly OBX but he went to HS and college in Greenville). He would love to have some waterfront property down there. He’s a little bit country and I’m a little bit city. It would be ideal for us to have a place in rural NC and in Virginia Beach where we are.
Are prices still reasonable in your area? I’m not sure exactly where you are. Feel free to contact me off line if you’re really selling something.
–Natalie