Buying a property in a flood zone and insurance

[Cody Jensen]

Hey Guys,

Is buying a investment property in a flood zone a bad idea?

Do you currently own a property in a flood zone ? If so, how much are you paying for flood insurance? 

[Lynn McGeein]

My flood insurance has more than doubled since I bought my property in 2009 thanks to the weird flood insurance market"fixes."  When I bought the home, I was told that the subsidized ones may be affected in the future, but not the ones that aren't subsidized, so I didn't have to worry as my rates already took the full risk into effect.  That was false.  They decided to charge investors more so subsidized owner-occupants could continue to pay less.  I would still consider property in a flood zone, but only if it was a good enough deal that I could pay cash and not worry about lender-required insurance.