Is Disaster Property Investing A Smart Strategy?
Q: I was reading an article about a real estate investment firm that rehabs and flips properties in areas after they’ve sustained a natural disaster–is that a good strategy? Todd, Corolla, NC
A: Every local real estate market is different, so it’s very important that before you invest anywhere you do your homework first. Preparation is even more important before you invest in an area that has sustained a natural disaster because there are likely additional challenges you have to contend with like the lack of electrical power for example. Before even considering a disaster property investment, you’d want to line up and partner with local contractors, architects and speak with the local building department to find out exactly what’s required to do work and pass inspections after repair work has been completed. I’d caution against disaster property investing unless you partner with someone who has direct experience rehabbing in disaster areas and ideally someone who has experience doing renovations in that particular town or area. Thanks for your question, Todd.
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