How do you deal with a property on a flooding zone?

[Rogerio Moura]

I'm looking at some deals and I found this one that is calling to me, it looks like a great deal for a long term rental, but, the property is on a flood zone...
Do you have any experiences with properties like this?
What are some of the things I should be concerned?
If you had any experiences with a property on a flood zone, how did you deal with it?
Thanks in advance!

[Colleen F.]

@Rogerio Moura do a search of the forums on flood zone and you will see a lot of discussion on the ins and outs of this type of rental. You have to consider the added cost of flood insurance which isn't cheap depending on the flood zone. FEMA is remapping in some areas too. Checkout www.floodsmart.gov for maps. The term Base flood elevation and the type of flood zones you should get familiar with before buying. Also FEMA coverage is different for investment properties so when you get insurance make sure you know the coverage.

If the property is in a flood zone and has a significant history of floods you have to consider if you want to deal with that.  If it doesn't flood but has a risk due to the zone you its all about your risk tolerance. Make sure your renters have renters insurance. 

I grew up and subsequently owned a two family in a flood zone. It had a history of flooding and because of that history I wouldn't do it again. However there are whole sections of town that are in the zone and never flooded. I would be fine having one of those homes as a rental.  It is still a risk but less so.