Flood risk houses worth it?

[Ekikere Etokebe]

Hi everyone, currently here looking to learn and I'd like to know when you should avoid a house with flood risk and when to consider it. Thanks in advance for the answers!

[Colleen F.]

What is the cost of flood insurance? Is it public or private?  What flood zone is it in? Has it flooded?  Know that flood insurance pays differently for investment properties then for owner occupied. You could be essentially uninsured. 

That said I would not buy and hold a rental property with ongoing possibility of flooding unless maybe it was a coastal airbnb raking in the bucks. or something that needed flood insurance but never flooded. Being in TX there might be some other considerations in areas where you have seen one time flooding.   For flipping you just have to look at marketability. something with a 2k flood insurance will be less marketable then something without it.