Rockton, IL · Member since 2018 · 21 posts · 4 votes
I have a duplex, I live in one side and renting out the other. it is in a flood zone and I do have flood insurance, im on an FHA loan. I put sand bags around the property about 4 layers high, and had a sump pump going. the water is just way to high now, it is record high. my duplex was even on the news, what do I do now...
is there any services or grants to help me pay for what insurance can't
what are the chances I could somehow get off of the fha loan and have a new building made?
is my flood insurance company actually going to be on my side here?
this is my first investment property as I am new to this. I just need some sort of direction
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
7y
As long as you have flood insurance you will be OK! Knock on wood - I haven't personally had a flood claim, but I know plenty of investors who have. (I live in a flood prone area.) They always make out A-OK. The contractor you choose should be able to do the restoration within the budget the insurance company comes up with. Investors with good crews who get volume discounts almost always get the work done for less. Being a newbie, you may not be there yet, but it shouldn't be bad as long as you make the right contractor choice. Check with your local REIA if you don't have your own contractor contacts already.
OH (ohio) · Member since 2016 · 63 posts · 43 votes
7y
@Brandon McMullin flood insurance won’t pay for a lot of stuff. For instance it doesn’t pay for carpet. Check your fema policy. You can build a new buildIng, but you’ll have to go through hoops. For instance the foundation needs to be raised and water must be able to flow in and out.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
7y
Check your city/state programs as due to you living in one side, there may be special assistance for owner occupants that may not be offered to an investor. I'd think the insurance agent would know, but it may take some calls to the local government. Some cities even have funds to buy you out in certain areas to avoid rebuilding in a flood zone or offer low interest loans to elevate if rebuilding. Read your flood policy as many owner-occupant policies do have personal belongings coverage.
Also, depending on landlord/tenant laws, you may need to actually issue your tenant a notice if the unit is no longer habitable. If notice is required, it's prudent to do so to protect yourself, no matter how self-evident it is. Some let you just break the lease as of the day of the incident; other areas may require some assistance to the tenant.