Insurance Dispute Lawyer Blog
With the market bottomed out on homes with Chinese drywall, some have chosen to invest in the faulty homes hoping to turn a profit. While most homeowners are running from these dwellings built with faulty wallboard, certain investors believe something salvageable remains and are taking the risk while buying homes at 40% (or below) their market value. Approximately 30 homes disclosed to have Chinese drywall have sold in Naples alone.
The Naples News reports
William Floyd, who owns a property management company in Fort Myers, bought one drywall home in Cape Coral after vetting it for building components he thought would make the home salvageable.
“It’s got to have wood studs and PVC plumbing,” Floyd said. Steel studs and copper plumbing may have started to corrode, he said.
But the verdict is still out on the solution for repairing these homes.
Knight, a Lee Building Industry Association board member, said sulfur gases may seep into foundations, studs and concrete block, dispersing slowly even after the faulty drywall is replaced.
While it’s a risky business practice, such actions will always come out in times in which the market drops so drastically that desperation facilitates “deals” in the eyes of some. What remains to be seen is the long-term effects to the homes, and homeowners, that is caused by Chinese drywall. Only then will these investors know if their risks have paid off.