‘Slap lipstick on a pig’ – Buyers are snapping up hurricane-damaged houses in Florida to flip them, however issues are rising concerning the high quality of repairs

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A rising development has emerged following Florida’s historic hurricane season: investors are taking over houses broken by the hurricane, particularly in neighborhoods like Shore Acres in St. Petersburg.

Fox 13 Tampa Bay first reported on it on December 13, highlighting each the alternatives and dangers of this phenomenon. Whereas some see it as a chance to rebuild and revitalize, others are sounding the alarm concerning the high quality of the repairs — and questioning whether or not future patrons will unknowingly inherit houses with hidden issues.

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Albert Jasuwan of JAS Builders informed Fox 13 that many traders are specializing in waterfront properties now valued at $800,000 or much less. “The principle factor traders concentrate on is demolishing homes and rebuilding them,” Jasuwan stated. The emphasis on rebuilding has made these properties enticing to traders hoping to resell them for a revenue.

At Shore Acres, the numbers inform a transparent story. Kevin Batdorf, a neighborhood actual property agent and president of the Shore Acres Civic Affiliation, shared that of the 40 houses bought within the neighborhood for the reason that hurricane, 38 have been bought by traders. “My greatest concern is that traders will bounce in and, as they are saying within the trade, put lipstick on a pig and promote it,” Batdorf stated.

The phrase “placing lipstick on a pig” highlights issues that a few of these repairs might be superficial, leaving deeper structural or water injury unresolved.

See additionally: This startup backed by Jeff Bezos will assist you to become a homeowner in just 10 minutes, with minimum investments as low as $100 for properties like the Byer House from Stranger Things.

For patrons, this might imply pricey surprises, particularly in terms of buying insurance coverage for these houses. “The most important concern is the individual shopping for it from the investor, as a result of they will not pay attention to the extent of the injury and should not be capable of get insurance coverage,” Batdorf warned.

The home insurance market in Florida The state of affairs is tough and up to date hurricanes have solely made the state of affairs worse. Owners are dealing with skyrocketing premiums, with some seeing will increase of as much as 400% lately.

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