Hello BP! Shout out to all VA investors... hoping to gather some advice. I am looking for a SFH or Duplex in the Norfolk/Virginia Beach area to buy and hold and/or AirBNB. Preferably under 180k.

Research has let me know to avoid flood zones but i am finding that EVERYTHING is in "flood zones"! 

My question is- should I avoid flood zones at all costs and keep searching? Or should I get quotes for flood insurance and factor that into my calculations? Also, if i find a property OUTSIDE a floodzone... is it still a best practice to get flood insurance regardless as a form of protection?

The FEMA website is kind of confusing.... everything i seem to plug in shows up in the blue segments which I am guessing means its a flood zone right?

Many thanks! 

Hi @Priscilla Quintana . I can help you. I'm a licensed Broker in VA and have access to the areas you'll be looking in. In addition, I own and manage several vacation rentals in the area, a real estate team (Seven City Homes) and a property management company(Limehouse Property Management). I can pull up the flood maps to give you an idea as well as put you in contact with some local insurance companies that will insure close to the water (most of the big companies stay clear of insuring within a mile of the water which is almost everywhere). Basically, I can help you with all of it except we are not managing short term rentals for others at this time. Let me know if you need help.

I would just factor it into your costs. If the numbers work, the numbers work. Just have a reserve ready in case the worst happens. I currently have a primary in a flood zone, and it hasn't been a problem yet. Just higher insurance costs. Additionally an elevation certificate will be require, which could help the insurance cost if the home is built up on a higher foundation to mitigate the risk, or maybe just the garage is exposed to potential floods. 

Like Brandon Tuner always says on the podcast, he never thought hard money would work, until he just started factoring it into his analysis. Then if the numbers still worked, its still a deal. Happy hunting!

@Priscilla Quintana would be glad to get satellite mapping on any specific address for you. Better than FEMA maps and the private flood market is trying to fix NFIP issues

@Ben Guttman Thank you! So essentially I would send you addresses and you could provide what the rates would be? I am assuming its not a standardized % or dollar amount i can generally plug into my calculations like I could with vacancy rates, etc?

I just wanted to add that there are multi-family not in flood zones under 180K, but the competition is fierce with offers usually over list if it's priced right.  If the property currently has flood insurance, it's my understanding that the rate can be transferred to the new owner, but that may just be for owner occupant.  Until the flood insurance market stabilizes, be careful as it doesn't appear to be getting less expensive, so I avoid flood areas unless I can afford to pay off the mortgage to be able to get rid of flood insurance if flood insurance rates get too ridiculous.  

@Priscilla Quintana correct.