Property in a Flood Zone

[Marcus McGee]

Hey everyone, I need a little advice on a property I'm attempting to get under contract. The property is located in an AE Flood Zone. Apparently it has flooded a few times and the flood insurance is a little high because of this. They've completely renovated the kitchen and all the floors. Properties in the area are selling for around 90-100K, and they are simply asking for about 70% of that (just the amount they owe on their mortgage) I'm trying to get the amount of the flood insurance from the seller, but my question is, how much of a role does flood insurance and being in a flood plain play in an investor's decision to purchase the property? I'm assuming that they wouldn't buy it as a rental/buy and hold and I'm thinking that fact may take the deal off the table. Any advice or simple insight would be very much appreciated. Thanks!

[Alan Grobmeier]

@Marcus McGee, my luck is if it’s in a flood plain, it will flood while I own it.  $hit happens.

I’d pass.  ;-)