Investor · Seattle, WA · Member since 2016 · 5 posts · 1 vote
I’m trying to get a mortgage on a rental property in St. Petersburg Florida, which is a relatively safe area (from flooding perspective). The quotes I’m getting from 2-3 providers is astronomical. For a 200k house, the annual premium is $5-$6k, which kills any cash flow. What am I missing here?
Realtor · St. Petersburg, FL · Member since 2018 · 7 posts · 2 votes
5y
I'm in St Petersburg and in a AE 9 zone. Its my primary residence and I pay about $1600 /year. St Petersburg is part of the National Flood Insurance Program with FEMA and it allows a lower rate. I'm not sure whether its eligible for investment properties though. Shop around and make sure the insurance company participates in the NFIP.
Additionally it may be worth checking. There are new flood maps that are supposed to be released this year which will change the flood zone of some areas. For instance, my house will be going from an AE to a X100 zone. The current flood maps are from 2003 so its about time their due for an update. You can check the property at https://www.pinellascounty.org... to see if there's any change.
Investor · Seattle, WA · Member since 2016 · 5 posts · 1 vote
5y
Thank you. The insurance agent tells me I’m paying about 2k more than what I would pay if it were my primary residence.
I’m confused about this. Do all investors in this area pay 2-3% of their property value for flood insurance, or is just my lender that is asking for it? don’t also forget this area has high property taxes