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A growing trend has emerged in the aftermath of Florida’s historic hurricane season: investors are snatching up hurricane-damaged homes, particularly in neighborhoods like St. Petersburg’s Shore Acres.
Fox 13 Tampa Bay first reported on this on Dec. 13, highlighting both the opportunities and risks of this phenomenon. While some see this as an opportunity to rebuild and revitalize, others are raising red flags about the quality of repairs – and whether future buyers will unknowingly inherit homes with hidden issues.
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Albert Jasuwan of JAS Builders explained to Fox 13 that many investors are focused on waterfront properties now valued at $800,000 or less. “The main thing investors are focusing on is lifting homes and rebuilding them,” Jasuwan said. The emphasis on rebuilding has made these properties attractive to investors hoping to flip them for a profit.
In Shore Acres, the numbers tell a clear story. Kevin Batdorf, a local realtor and president of the Shore Acres Civic Association, shared that of the 40 homes sold in the neighborhood since the hurricane, 38 were purchased by investors. “My biggest concern is that investors are going in and, as we say in the business, slapping lipstick on a pig to resell them,” Batdorf said.
The phrase “slapping lipstick on a pig” highlights concerns that some of these repairs may be superficial, leaving deeper structural or water damage unresolved.
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For buyers, this could mean costly surprises, particularly when securing insurance for these homes. “The biggest concern is for the person who buys it from the investor because they won’t be aware of how bad the damage was and may not be able to get insurance,” Batdorf warned.
Florida’s home insurance market is in a tough spot and recent hurricanes have only worsened things. Homeowners are facing skyrocketing premiums, with some seeing increases as high as 400% over the past few years.
