Property in flood zone anyone apply for LOMA and Elevation Cert?

2 Replies

There is a nice single fam. I am interested in, however it's current flood zone status is what is holding me back and probably plenty of other people back as well..

Just curious has anyone ever gone throught FEMA for a LOMA (Letter of map amendment) This entails getting a elevation certificate as well to see the lowest point of the property in relation to base flood elevation.

Property sits in an AE zone but the line for the X zone
(low to moderate risk) runs directly down property line so it is on border. I will find out how bad or if it flooded at all with sandy hopefully on Saturday.

Do you guys think I am nuts to take on an investment property in a flood zone or if gotten at the right price could be a good investment?

thx in advance,


I'd stay away from a zone AE property. Year to year you can't control the rising expense of a flood insurance. You can't shop the rate. Just not worth it as an investment property. Unless you are buying in cash. Even then I'd be cautious because the premiums on Zone AE are so high and keep rising that its going to force many homeowners around you into foreclosure eventually. Which will lower your property value. 

The LOMA process is very long and arduous. Takes months. I am currently having my own home that is in Zone AE resurveyed to try and get the rate down and help sell the hosue. When I bought my house 6 years ago the Flood insurance was only $650. Today its $1400!

In some states you can now get a Private Flood Insurance through Loyd's of London at a better rate than FEMA

I am part owner what I call our Sandy house in Woodbridge, NJ. I would not advise getting into a flood zone now. NJ is being remapped and flood insurance will go high. Ours rose considerably after Sandy (albeit we did flood significantly). In addition to the cost- as an investor you will be treated differently. Had I owned the home as an investment I would still be fighting with the insurance company. As it was lived in by my brother as a part owner we fell into a different category. NJ is a lot of swamp so an x zone may be ok but AE not so much. Consider if it is really likely to flood, did it flood in Sandy? what was the damage? How is it built? The FEMA people were okay after the flood as far as things went, awesome in their interactions with us but in the end after a flood you are not made whole to what things were like before the flood so that is the cost of the flood zone. The flood insurance cost is also high. Our place is a two family and if I was living in it and renting one side the numbers would work sort of with flood insurance and taxes but otherwise if i had bought my siblings out and ran it as a investment not so much. I am not sure with a single family you could make it work but run the numbers. A lot depends on the BFE too so look at that and the insurance (then double it ) and see if it works. In your area you are going to see a lot of flood zone properties but run the numbers cautiously before committing if this is what you really want.

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