Recent weather events, such as Hurricane Helene, have highlighted the need for real estate investors to be diligent about understanding potential risks. At TownSquare Capital, we take a comprehensive approach to due diligence, ensuring that any multifamily property we acquire meets our high standards for safety, stability, and long-term value.
In a recent article called “The Impact Of Hurricane Helene On East Tennessee Real Estate: What Buyers Should Consider,” Real Estate Agent Brittany Zhou talks about key areas to consider when buying homes in East Tennessee. We took the article and adapted it to what TownSquare Capital does with our multifamily properties.
Here are some key factors we evaluate:
UNDERSTAND FLOOD ZONES: We carefully review FEMA flood maps to identify high-risk areas. Properties near bodies of water, including rivers and lakes, can be more vulnerable to flooding. Our team seeks out properties located outside designated flood zones or in areas with lower flood risk classifications to minimize potential exposure.
CONSIDER ELEVATION: Elevation plays a critical role in reducing flood risk. When evaluating a potential acquisition, we assess the property’s position relative to its surroundings. Multifamily buildings situated on higher ground, with effective drainage systems, are prioritized for their ability to withstand heavy rains.
ASSESS LOCAL INFRASTRUCTURE: Local infrastructure is key to managing flood risks. We examine drainage systems and flood management solutions in the area to ensure that they are equipped to handle significant rainfall. Recent improvements or planned upgrades in storm water management are also important factors in our decision-making process.
REVIEW HISTORICAL FLOODING PATTERNS: Historical data provides valuable insights. We research local records and engage with community members to understand past flooding events and their impact on specific properties. Properties with a history of water intrusion or damage are carefully scrutinized or avoided altogether.
EVALUATE INSURANCE COSTS: Before making an acquisition, we obtain comprehensive insurance quotes, including flood insurance, to fully understand the cost implications. Properties located in areas with effective flood risk management may benefit from lower insurance premiums, making them more attractive investments.
STAY INFORMED ON FUTURE DEVELOPMENT PLANS: Changes in local development can influence flood risk. We investigate any upcoming projects that might alter water flow patterns or impact the local environment. By staying informed on future developments, we make well-informed investment decisions that prioritize long-term value and stability.
At TownSquare Capital, thorough due diligence is essential to safeguarding our investments and ensuring steady, reliable returns for our partners. By carefully evaluating these factors, we continue to acquire multifamily properties that are built to endure and thrive.
You can read Brittany’s full article at: https://www.brittanyzhou.com/post/the-impact-of-hurricane-helene-on-east-tennessee-real-estate-what-buyers-should-consider
