Author Topic: Sink hole - suggestions  (Read 1806 times)

daverobev

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Sink hole - suggestions
« on: June 16, 2015, 11:41:18 AM »
There were floods in Texas. Apparently this has caused a sinkhole under a rental property I own.

Quote just came back at roughly 50% of the purchase price, to fix it.

As far as I can see my options are to fix the problem, or write off the house. House has been rented solidly, made a decent return, but obviously adding ~50% to the cost will make the numbers much worse!

I am assuming that a foundation repair would be treated as an expense, so it would directly reduce my income for this year. I assume writing off the house would be a capital loss.

As such, and while it is painful to contemplate, I think my only real option is to get the foundation work done.

Thoughts/suggestions?

ShoulderThingThatGoesUp

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Re: Sink hole - suggestions
« Reply #1 on: June 16, 2015, 11:55:10 AM »
In Houston city limits, 50% is a magic number that may mean you need to raise the house if it's in a floodplain, according to this news story.

CowboyAndIndian

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Re: Sink hole - suggestions
« Reply #2 on: June 16, 2015, 01:46:01 PM »
Why don't you put in a claim with your insurance?

Read the insurance doc and see if they exclude sinkholes.
 
Edit: Check if you have flood insurance. Since the sinkhole was caused by the flood, the insurance company may refuse to pay up unless you have flood insurance.
« Last Edit: June 16, 2015, 05:01:00 PM by CowboyAndIndian »

CashFlowDiaries

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Re: Sink hole - suggestions
« Reply #3 on: June 16, 2015, 08:54:38 PM »
For something that drastic caused by natural disaster.  You definitely need to talk to your insurance and see what they can do on that.  Depending on what they say, should dictate what your best move is.

Find out, let us know.

daverobev

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Re: Sink hole - suggestions
« Reply #4 on: June 24, 2015, 11:12:15 AM »
So far, quote from foundation co as mentioned, another quote to fill hole/put concrete forms + rebar round the edge of the house was 1/10th the amount. My agent thinks that'll work but takes no responsibility, which is fair enough.

Apparently an adjuster will contact me in the next couple of days. I guess if insurance will pay, I'll go the expensive route. If they won't (which is what I expect but I don't understand why they haven't already made that determination!), I'm probably going the cheap route and hoping.

Not Houston.

Louisville

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Re: Sink hole - suggestions
« Reply #5 on: June 24, 2015, 11:38:51 AM »
Do you really mean "sinkhole", as in a karst event of some kind? Or just that some soil has been washed out from under the foundation?
If it's an actual sinkhole, you might have to consider that the property is a total loss forever, and not put any money into it. It could (and eventually will, though it might take decades or centuries) expand to engulf the entire house.
Have you had someone like a local university geological extension office or a construction engineer (not a contractor) look into it?