Investor · Houston, TX · Member since 2019 · 13 posts · 5 votes
Thoughts on buying rental properties that have flood damage . I’m going the rehab and rent route so the maintenance isn’t the issue for me. Just wondering is I should stray away from buying properties that have flooded or in flood zones ?
It all depends on the numbers. First off, check the flood maps to see how likely another flood is. Next, check the cost of the flood insurance and plug it into your calculator.
Personally I wouldn't buy in a flood zone because I feel like I can find plenty of better deals that don't have that problem. Everyone has their own risk profile though so you just have to decide what yours is.
It all depends on the numbers. First off, check the flood maps to see how likely another flood is. Next, check the cost of the flood insurance and plug it into your calculator.
Personally I wouldn't buy in a flood zone because I feel like I can find plenty of better deals that don't have that problem. Everyone has their own risk profile though so you just have to decide what yours is.
It depends on your risk threshold because you have to factor in the cost of extra flood insurance which might cut into your cash flow and also if the property is in a flood zone and there is a flood, your property may be flooded which may lead to lost income due to it being evacuated and an extra cost to rehab the property when the flood abates
Flood insurance can be very expensive, and FEMA has been redrawing flood maps over the past decade so that houses that were on the edges are now in flood zones, with the extra costs it brings.
That said, some people have made a lot of money on previously flooded homes, renovating and reselling/renting. Sometimes you can do things to limit the flood risk.
It’s not something I’ve embarked on, but the concept sounds possibly intriguing...