Updated over 11 years ago on . Most recent reply
61 unit multi-family in flood zone
I'm looking at a 61 unit building in a flood zone in St. Louis. I like the property, area, and price point however I am trying to gauge if the property will be harder to dispose of after our planned holding period (5-7 years).
Are there any multi-family investors/brokers that have had experience with complexes in flood zones? I understand the additional cost for flood insurance needs to be added in however should I discount the property beyond that? I have requested all of the current insurance information, information on claims, signed affidavit stating any current or past issues etc etc. The property doesn't sit near the river but rather on a dry basin near a small creek. Any help would be appreciated!
Most Popular Reply
the buildings may be above the base flood elevation but the parcel itself may be throwing you in the flood zone. You need to first see where the property lies on the FEMA firmette to determine what zone it is in. From there I can advise. It may be that only a few units are affected. The lender will require flood certs for the buildings. Usually not a big deal. I'm a land surveyor and I do lots of elevation certificates. You may not have that big of a problem.
Clint