Quincy, MA SFR in FEMA flood zone

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Quincy, MA SFR in FEMA flood zone

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MA · Member since 2015 · 59 posts · 9 votes

Hi does anyone have experience having a SFR in a FEMA flood zone. The reason I'm asking is that my father invested in a property in a flood zone. It was bought quite low for about 125,000 and had about the same amount put in to fix it up. A 250K house total. Top to bottom work. New sidings, fixed up detached garage with new floor, new concrete driveway, removed oil burner in basement replaced with new HVAC system, a 2nd story deck was added. New Kitchen and flooring but wasn't sure if it was a floating floor which I'm not in love with. Really nice job but there are some things I see that rub me the wrong way.

1. It's a small home 1010 sq ft. I'd say a 2 bdrm with an office that can be turned in to a bdrm with 1 regular bath in the 1st floor and a strange sort of attic bathroom where they have a sloping roof line for the shower. More like a tiny bathroom on the 2nd floor to accommodate 2 bedrooms which seems awkward to me. I'd like to really make it nicer with glass and tiling but a pig is a pig. The 3rd room on the 1st floor can be used as an office or a small bdrm. 

2. It's in a FEMA flood zone. Potential for resale is hard for me to see happening. There is a sump pump in the basement.

3. Landscaping. There is a wet spot in the yard as it abuts a city owned tiny plot overgrown with tall 12 foot reeds. It is quite an eyesore and not sure if I should invest in a rain garden landscaping to make it more beautiful. Of course the new owner will have to manage it and not sure if that should be included in the house for sale. But might make it more salable. 

 I would like to add better looking shrubs, bushes and trees around the house. But not sure if that is something investors do. I like to garden and one of my passions is to one day do some small scale agriculture/homesteading. 

Quincy seems to be the next "hot" market I feel in the future. As Somerville, JP, waterfronts, Southie, and South End seemed to be filled to the brim with new hi rises. I feel like it'll burst but there has been such a demand for condos for years that maybe I'm just being pessimistic. Now living in NYC and I feel the market just doesn't stop. Was out priced in Astoria Queens and planning on leaving to make a go at it with the family real estate holds in Boston. What I see successful are Buy and Holds in big cities and banking on appreciation. Which is what it seems to be despite hearing the advice of to never bank on it. 

Anyone have any suggestions. I'm thinking the house can go for 350 only if some of those quirks are fixed up. It is being rented now but I think under 2000 which I don't think is enough IMO. The 1% rule would mean 2500 a month. Also no mortgage so cash flow is all used to cover expenses. Not sure what those are as it's a turnkey property pretty much. 

Thanks all,

Justin

PS I'm nervous sharing all this info I know this is a very sharing community but part of me feels awkward about it. Maybe a newbie thing. Already some members have given a lot of great advice so I appreciate it. 

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  • Ray HurteauPro Member
    Developer · Boston, MA · Member since 2013 · 128 posts · 66 votes
    11y

    Justin, good stuff here - don't feel bad to ask for advice.  

    1) 3 bedrooms is always better than 2.  You're most likely going to find someone who wants to be close to the water, use it for a summer home/cottage, or it would be a first time home buyer.

    2) The flood map in Quincy was recently updated for 2015 and some properties fell out and others came in.  Insurance is expensive, can be 5-10k per year.  Do you know your cost now?

    3) You could put up a small fence or get some other shrubs - if it's just a small part of the land, I would not worry about it too much.

    Most importantly, who are you using as your agent? They will advise on the ARV and when you start buying property, you should always know a conservative ARV before you buy the property.

    Hope this helps and hope it goes well!

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  • Lucas D'Onofrio
    Pompano Beach, FL · Member since 2014 · 1 post · 1 vote
    11y
    Hi Justin, I'm a flood underwriter for the biggest flood insurance company in the nation. This is my first post as its probably one of the few things I can actually contribute with confidence. I can't give advice on what to do with the property, but as for the flood zone, what are your concerns? I can tell you now it truly depends on what zone it's sitting in. If you're looking at VE, you'll most likely be seeing a pricey premium. If it was built before 1974 you can get away with not having a elevation certificate but again you could be paying a high price. I would highly recommend paying $100 for a surveyor to come out and get an EC which could save you a lot more than you think. If you have any questions just pm me and I might be able to help you out with any questions in regards to the flood part.
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  • Account Closed
    OP
    MA · Member since 2015 · 59 posts · 9 votes
    11y

    Thanks Ray and Lucas. 

    I don't know who the agent is. I think they gave us a figure of 300/350K after renovations. It is marketed as a 3 bdrm 2 bath rental property. 

    It sits in zone AE 12' based on the MapGeo interactive map. I don't believe there is flood insurance at the moment which for me boggles my mind. There is no mortgage so it isn't mandatory, but I would think necessary.

     My biggest gripe is will this home sell.

    It was pitched to me to live in it for a few years and then sell to move to a larger house to nix the capital gains. Of course that means I take out a personal loan to pay off my father. But my worries are flood zone which means mandatory flood insurance and it being quite small. It's a great starter house, near the Red Line and highway, great renovations, 2 car garage, 2nd floor deck. The flood zone and insurance is always the thing that makes it undesirable. Having seen what Hurricane Sandy did to NYC and Long Island. I felt it was a strange investment. That just is my gut reaction to the place. Not sure if other people just don't worry about it and see it as a good deal for a first home.

    I rather sell this house or 1031 for another rental property. I can't bank on taking a mortgage on the house and living it it for 5 years to sell to make a profit based on the flood zone. 

    I just listened to the Waldo episode and maybe that is just playing in the background too much in my head.

    Best regards,

    Justin

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