I am about to close a deal on a fourplex by October 1st, this fourplex is in a flood plane. I plan to house hack this property and live in one of the units. One quarter of the property is in the "X zone" of the flood plane and the other three are in the AE zone which is more likely to flood. The problem is, the seller initially told me that only one quarter of the property is in the flood plane. What are your thoughts about buying in a flood zone and what tips and tricks can be helpful.
Price the flood insurance and look at the history of flooding. It isn't fun when a rental property floods but it depends on how severe it is. If it is in the zone but has no flooding history it is a money question with some elevated risk. If it has a flood history I wouldn't take it on but that's me. We had a house flood out in NJ and I think when you have an owner living there you will be in a better situation then if it is solely investment. Solely investment is treated less favorably then Owner occupied. Also make sure you get the Base flood elevation certificate to see if it helps your insurance. Check floodsmart.gov to get more information on BFE.