Article
When Texas Weather Turns Investment Dreams into Repair Nightmares
June 30, 2025
Real estate funding expert Alan Danielson knows that successful investing starts with understanding what you're really buying. As founder of Quantum Funding Co, he works with investors across 45 states who need to evaluate properties quickly and accurately. So when one of his clients showed interest in a multi-unit apartment building at 255 Turner Avenue in Roanoke, Texas, Danielson partnered with PropertyLens to demonstrate how investors can use comprehensive property intelligence to uncover hidden risks.
What the analysis revealed was sobering: between $44,000 and $217,000 in potential repair costs over the next two years. For investment properties where cash flow is king, unexpected expenses with this potential magnitude can quickly turn a promising opportunity into a financial burden.
The Hail Capital of America
Texas has earned its reputation for severe weather, and the Roanoke property's history tells that story in damaging detail. PropertyLens data revealed multiple major hail events, including devastating 3-inch hail in 2011 with a 90% probability that the roof was totaled.
"Three inch hail is pretty big," Frady explained. "90% probability that the roof was totaled in this. And if it wasn't, then it's probably damaged."
The assault continued: 3.25-inch hail in 2023, followed by 2.5-inch hail in 2024. As Frady put it, "This is more than most places get. And looking at all of this, there's a lot of wear and tear on that roof."
For investors, this pattern creates a compounding problem. Danielson immediately recognized the implications: "The first thing I would be asking about, and having the inspector really dig deep into, is the roof, especially because living in this area, I'm very aware of the recent storms we've had. We had about three inch hail a week ago."
The Seven-Year Rule That's Catching Texas Property Owners By Surprise
Adding to the complexity is a recent change in Texas insurance regulations that many investors don't fully understand. "As of the beginning of this year, roof coverage switches from replacement cost to actual cash value after only seven years in Texas," Frady explained.
This means that if a roof is more than seven years old, insurance payouts decline over time based on depreciation. For a property that's been repeatedly hammered by hail, this creates a dangerous financial scenario where owners may find themselves paying out of pocket for what they assumed would be covered repairs.
"You want to make sure you know exactly how old the roof is on this location," Frady emphasized, "because if you look here at the damaging events, they go all the way back to 2011."
What the analysis revealed was sobering: between $44,000 and $217,000 in potential repair costs over the next two years. For investment properties where cash flow is king, unexpected expenses with this potential magnitude can quickly turn a promising opportunity into a financial burden.
The Hail Capital of America
Texas has earned its reputation for severe weather, and the Roanoke property's history tells that story in damaging detail. PropertyLens data revealed multiple major hail events, including devastating 3-inch hail in 2011 with a 90% probability that the roof was totaled.
"Three inch hail is pretty big," Frady explained. "90% probability that the roof was totaled in this. And if it wasn't, then it's probably damaged."
The assault continued: 3.25-inch hail in 2023, followed by 2.5-inch hail in 2024. As Frady put it, "This is more than most places get. And looking at all of this, there's a lot of wear and tear on that roof."
For investors, this pattern creates a compounding problem. Danielson immediately recognized the implications: "The first thing I would be asking about, and having the inspector really dig deep into, is the roof, especially because living in this area, I'm very aware of the recent storms we've had. We had about three inch hail a week ago."
The Seven-Year Rule That's Catching Texas Property Owners By Surprise
Adding to the complexity is a recent change in Texas insurance regulations that many investors don't fully understand. "As of the beginning of this year, roof coverage switches from replacement cost to actual cash value after only seven years in Texas," Frady explained.
This means that if a roof is more than seven years old, insurance payouts decline over time based on depreciation. For a property that's been repeatedly hammered by hail, this creates a dangerous financial scenario where owners may find themselves paying out of pocket for what they assumed would be covered repairs.
"You want to make sure you know exactly how old the roof is on this location," Frady emphasized, "because if you look here at the damaging events, they go all the way back to 2011."
"The first thing I would be asking about, and having the inspector really dig deep into, is the roof, especially because living in this area..."
Multi-Unit Properties: Why Every Address Matters
One of the most valuable insights for commercial property investors came from understanding how to properly analyze multi-unit properties. PropertyLens co-founder John Siegman provided crucial guidance:
"The first thing we want to find out is: are all of the buildings underneath the 255 Turner address. Because a lot of times each complex will have its own address. So you might have five buildings on the property and there are five different addresses."
This matters because risks can vary dramatically across a single property. "Crime's not going to change any," Siegman noted, "but flood, however, could change dramatically from one end of the complex to the other. Roof updates could be totally different for each building."
The Permit Problem That Plagues Investors
Perhaps the most concerning discovery was the absence of building permits for recent work, despite evidence of system updates. For commercial properties, this raises red flags.
"My first thing that I want to find out is all the permits," Siegman said. "Being a commercial property, we would typically would find a lot more permits than you do on a typical residential property. There’s a lot more enforcement on permits for commercial."
This creates cascading problems for investors. Without permits, it's impossible to verify when work was done, whether it was done to code, or what systems might need attention. As Frady noted, "There's not a lot of information about this particular location. So your pipes, your plumbing fixtures, your sewer line, all things that you could end up spending money on because there's no report of improvements."
One of the most valuable insights for commercial property investors came from understanding how to properly analyze multi-unit properties. PropertyLens co-founder John Siegman provided crucial guidance:
"The first thing we want to find out is: are all of the buildings underneath the 255 Turner address. Because a lot of times each complex will have its own address. So you might have five buildings on the property and there are five different addresses."
This matters because risks can vary dramatically across a single property. "Crime's not going to change any," Siegman noted, "but flood, however, could change dramatically from one end of the complex to the other. Roof updates could be totally different for each building."
The Permit Problem That Plagues Investors
Perhaps the most concerning discovery was the absence of building permits for recent work, despite evidence of system updates. For commercial properties, this raises red flags.
"My first thing that I want to find out is all the permits," Siegman said. "Being a commercial property, we would typically would find a lot more permits than you do on a typical residential property. There’s a lot more enforcement on permits for commercial."
This creates cascading problems for investors. Without permits, it's impossible to verify when work was done, whether it was done to code, or what systems might need attention. As Frady noted, "There's not a lot of information about this particular location. So your pipes, your plumbing fixtures, your sewer line, all things that you could end up spending money on because there's no report of improvements."
“For investment properties where cash flow is king, unexpected expenses with this potential magnitude can quickly turn a promising opportunity into a financial burden.”
Environmental Risks That Affect Both Tenants and Liability
Beyond structural concerns, the PropertyLens report revealed PFAS contamination in the area, the so-called "forever chemicals" that have become a growing concern for property owners and residents alike.
For Danielson, whose client cares deeply about providing quality housing for low income families, this discovery was particularly important. "You want to ensure your tenants have good water so they're not sick."
The Three Critical Questions for Investment Property Buyers
Based on their analysis, the PropertyLens team and Danielson identified three essential areas for any multi-unit property evaluation:
1. Roof Condition and Responsibility
The first rule of PropertyLens is always figuring out the situation with the roof. For the Roanoke property, this means understanding not just the current condition, but also the history of repairs and who will be responsible for the replacement.
2. Water Quality and Tenant Safety
"The second thing I would ask about is the water," Danielson emphasized. Testing for PFAS and other contamination isn't just about liability. It's about providing safe housing for tenants and protecting your investment from future health-related issues.
3. Foundation and Structural Integrity
"The third thing is making sure the property has the appropriate general protections for the residences," Sigmund noted. This includes not just security features, but also addressing soil runoff concerns that could affect foundations over time.
The Bottom Line for Real Estate Investors
The Roanoke property illustrates a critical truth about real estate investing: the listing price is just the beginning. With potential repair costs ranging from $44,000 to $217,000, this property demonstrates why thorough due diligence is essential for protecting cash flow projections.
For Danielson, whose client cares deeply about providing quality housing for low income families, this discovery was particularly important. "You want to ensure your tenants have good water so they're not sick."
The Three Critical Questions for Investment Property Buyers
Based on their analysis, the PropertyLens team and Danielson identified three essential areas for any multi-unit property evaluation:
1. Roof Condition and Responsibility
The first rule of PropertyLens is always figuring out the situation with the roof. For the Roanoke property, this means understanding not just the current condition, but also the history of repairs and who will be responsible for the replacement.
2. Water Quality and Tenant Safety
"The second thing I would ask about is the water," Danielson emphasized. Testing for PFAS and other contamination isn't just about liability. It's about providing safe housing for tenants and protecting your investment from future health-related issues.
3. Foundation and Structural Integrity
"The third thing is making sure the property has the appropriate general protections for the residences," Sigmund noted. This includes not just security features, but also addressing soil runoff concerns that could affect foundations over time.
The Bottom Line for Real Estate Investors
The Roanoke property illustrates a critical truth about real estate investing: the listing price is just the beginning. With potential repair costs ranging from $44,000 to $217,000, this property demonstrates why thorough due diligence is essential for protecting cash flow projections.
As Danielson concluded: "I think real estate is exciting... it is probably the best way to invest your money in something that doesn't fade. But I think everybody and their dog needs to use the PropertyLens Report. It's self-preservation in action."
For investors, especially those working with turnkey providers or evaluating properties remotely, comprehensive property intelligence isn't just helpful. It's essential for avoiding the kind of expensive surprises that can turn a promising investment into a costly mistake.
When you're buying an income-producing asset, every unexpected expense directly impacts your returns. The Roanoke property looked solid on paper, but PropertyLens revealed the hidden costs that could make the difference between investment success and failure.
