The state of Texas was on pace for another record year for real estate in 2017. Then Hurricane Harvey happened. Many communities along the Gulf Coast were affected by the storm’s devastation, including Texas’ largest city, Houston. The Bayou City accounted for about 25 percent of Texas’ housing activity before the hurricane hit.

The good news is that the recovery phase is already underway. Investors are propelling a post-Harvey housing rally, and fixed or gutted houses in Houston are selling well. Single-family home sales across the Greater Houston Area were up 7.4 percent last month compared with November 2016, and buyers closed on 6,184 homes in a third consecutive month of sales gains, according to the Houston Chronicle. Zeus CrowdFunding provided financing for many such projects.

With many major flooding events, real estate inventory typically hits the market in three phases. The first round of flood-damaged homes snapped up by investors are usually homes that were on the market before the storm hit. A second wave of homeowners who can’t afford or don’t want to fix their homes usually place their properties on the market next.

Many of the best fix-and-flip opportunities to hit the Houston market following Hurricane Harvey have already been snapped up by investors. A third round of homeowners who began remodeling but became frustrated with the process and decide to sell is now underway. Properties in areas such as Katy and Cypress in high demand from families are where many investors are often most prized by investors.

Buyers are understandably hesitant to commit to long-term mortgages for homes that flooded during Harvey, particularly if these homes also took on water during the Tax Day flood of 2016. This makes flipping damaged homes more of a challenge. However, buy-and-hold strategies could pay off handsomely for investors.

The reason why is simple: Consumers—some displaced by the storm—are more willing to spend a premium renting properties that have previously flooded than they are to buy them. As the memory of Harvey begins to fade and Houston’s growth revs back up, housing demand will make these properties more and more attractive in coming years. Investors are likely to command higher sales prices by hanging on to post-Harvey housing and possibly renting them out rather than flipping them.

Zeus CrowdFunding offers fast, no-hassle financing to real estate investors across Houston and Texas. If you’re ready to begin rehab on a property to hold or flip, our platform can deliver the funding you need in days, not weeks. Or, if you’re looking to diversify your holdings, browse our industry-leading volume of crowdfunding investment opportunities. Click here to get started! It only takes three minutes.