LESSONS FROM HURRICANE MILTON: A REMINDER FOR REAL ESTATE INVESTORS

Hey Everyone,

As some of you might already know, I own 14 units in the greater Tampa area, so you can imagine how nerve-wracking last month was as Hurricane Milton tore through the region. My team on the ground assessed the properties to determine the exact extent of damage– and luckily the damage was minimal. All we needed to do was clear out some tree debris from the roof. This was a huge relief and not something I take for granted!

I’ve been reflecting on the lessons I’ve learned through this process, and I want to share them with you. Whether you own real estate in hurricane-prone areas or elsewhere, these tips are crucial to keeping your portfolio safe and secure:

1. Double and Triple Check Your Insurance Policies

Hurricanes can be unpredictable, and not all insurance policies cover everything you think they do. Some policies might cover wind damage but exclude flooding, or vice versa. Be sure to read the fine print on your insurance policies, especially if you own property in a hurricane zone. Consider gap insurance to cover whatever might be missing, so you’re not left in a bind when disaster strikes.

2. Healthy CAPEX Reserves Are Nonnegotiable

You never know what can happen when owning real estate. Having solid CAPEX reserves is essential—especially when you’re dealing with unexpected events like natural disasters. If I didn’t have a healthy reserve fund, any damage to my properties could put me in a situation where I couldn’t afford repairs. Always be prepared financially for worst-case scenarios.

3. Your On-Ground Team Is Everything

When investing out of state, your local team is absolutely critical. I work with a great contractor and property manager who took every precaution to secure my properties as much as possible. I also have some local friends who ran by the units to check on them as soon as they could. Having a trustworthy team that you can rely on during emergencies is invaluable.

While I’m grateful that the early signs suggest my properties are still standing and I won’t be dealing with any major repair issues, this experience has been a stark reminder of the importance of preparation. For any of you investing in hurricane zones or anywhere else, I hope these lessons help you feel more secure in your investments.

Here’s to all of us weathering the storm—literally and figuratively.

Stay safe and prepared,

Best,

DK 💰