Every mistake is a learning opportunity

[Stephen Scire]

I posted the other day regarding multifamily investing....but in the midst of that I came across a 3 unit summer rental  property in New Hampshire.  

The property was on 3900 sq. ft (small lot) but very functional. 2 buildings, 1st slept 8-10 , 2nd building has 2 units (1st & 2nd floor). Each had 2 bedrooms .

All 3 units had nice / updated kitchens w/ washer & dryer.

Very nice returns, NOI was well over what I've been seeing on 3/4 unit buildings, and this was only summer rental, 4 months.

It was even pre-booked  for 75% of 2019 season 

So , what's the problem?

Looming FLOOD-ZONE !

Although it was only a stones throw from the ocean,  it was the marsh-land to the south that was a threat and seemed to come alive in past winter months.

Now this property was NOT in the flood zone, not yet.  You see....the maps I believe were re-drawn 2 years ago, but have not been released any new info regarding this area. But I needed more info.

Watching videos of past winters' waters rising in the same town, but not affecting this property......calling my ins. agent to validate premiums, validating that it's not in floodzone.... calling my finance officer , asking if this would be an issue....and other miscellaneous research . All this, in 16 hours.

Well , little did we know, the couple that looked at this property immediately after us, beat us to the punch with an offer the next day, 3 hours before my request. 

What does this all mean.

I blame myself. Everything I've been learning,  I didn't do the most basic step. I had the #s, I had the expenses. I saw the cash flow .

I DID NOT LOCK IT UP !!!

My due diligence should of came AFTER I sealed an offer of acceptance.

I believe I over-thought everything in fear of the flood info. I believe I could of made my offer contingent to the new flood map findings.

But instead, I hesitated out of fear.

I'm posting this, because I swear to never let this happen again.

Lesson learned !