Rebuilding the Jersey Shore, One Home at a Time
The past six months, it's been tear-out, throw-out and rebuild, and we are still far from being done. We decided to do much of the work ourselves -- all but electrical and some of the plumbing -- with the help of some Macgyver-like friends. For those homeowners that had flood insurance, the contractor estimates have been coming in at anywhere between 1.5 and 2.5 times insurance proceeds, and that's if you can find a contractor that's not already booked solid. Some of those that had no flood insurance have put their homes on the market as is; home prices have not surprisingly fallen sharply, and it's a buyer's market. It's also a sad situation.
Rebuilding is a long and arduous process, which in our case has included at this count more than two dozen working trips to the shore and at least that many to Home Depot
As a value investor, I've wondered since day one of the tear-out phase which names might benefit from the massive rebuilding efforts.
Let's just say that my own credit card has been working overtime at Home Depot, which has a store about 7 miles from our cottage. I've been there morning, noon and night. So have many others; the parking lot is always full. The place is stocked to the rafters with all of the essentials; in this case heavy on sheetrock, joint compound, insulation, plywood, and framing studs. Sheetrock and insulation are very popular items. Every home that took on water had to quickly rid itself of both of these at least several inches above the water line, in order to stop the mold from spreading. Sheetrock manufacturer USG