Wholesaling in flood zones?

Question

So there is a vacant house down the street from where I live and from the out side it looks like it will need a lot of work it a small house with a 2 car garage detached and 2 bed 2 bath the area is nice, but the only thing is that it is in a flood zone? What is your opinion on flood zones in a nice area. Good investment or not a chance?

Anthony Surach · Answer

@Jonathan Greene @Nick C. Alright thank you guys for your in put im going to look into it.

Anthony Surach · Answer

@John Mocker alright thanks

John Mocker · Answer

Anthony,

There are now many non-FEMA flood policies.  They can be less expensive than the FEMA National Flood Insurance Program.  Several will quote with just an address.  Have your agent run comparison quotes.  You may be pleasantly surprised.  If your agent does not deal with them PM me and I will see if there are agents in your area

Pete Winslow · Answer

I agree - as long as the numbers work even with the flood insurance then it should be a good deal.  Just make sure that you run your numbers right!

Often times you can make a lot of money doing what other people are afraid of - flood zones could just be that thing.

Jonathan Greene · Answer

Flood zones are actually decent to wholesale at the right price because they can be good for a cash investor who can then decide on flood insurance if the area does not actually flood or if the rates are low. However, a lot of work and flood zone will really crunch the wholesale margin.

Nick C. · Answer

It shouldn't make a difference to an investor, that's what flood insurance is for. This may vary geographically, here in Florida we're at sea level, so flood zones are extremely common.