Flood Plain

Investor · Indianapolis, IN · Member since 2013 · 80 posts · 64 votes

Have 2 rentals in a flood plain. Flood insurance currently $700 per year each. Subsidy to FEMA is going bye-bye so got a quote on new number. Flood could go as high as $3800 per property. $300 per month just evaporated. Luckily they are duplexes so I'm treating it as $150 per side in extra overhead and rents will go up accordingly. Anybody else getting with something similar. Also have to pay for a new Elevation Certificate. Yay.

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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y
There is new Federal Flood Insurance legislation that goes into effect in 2014. The premiums are much higher, some people report that what was a $1,000 a year premium is now $10,000 a year. and the premiums go up for the next 5 years.

I'd sell properties that require flood insurance and would not buy any new properties requiring flood insurace, but that's only me.
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Joel OwensBusiness Member
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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
"rents will go up accordingly'

The flood insurance has nothing to do with local market rate rents. Your market may not support an increase to make up for the flood insurance.
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