What do you think of flood zone property?

[Michael L.]

Please only respond to this if you fix up properties for resale.

I found a 3/2 ,1600sqft, 2 story home for $135. The ARV is $235k. It needs $18K in repairs.The property was renovated and resold then an inch on water came into the property. The insurance company took out anything that would grow mold, and replaced the sheet rock and drywall. Basically just needs downstairs flooring, paint, appliances, a power wash, and landscaping. Everything else is basically new.

No one I know in the area who are active rehabbers wants to buy, because they saw it had signs of flood damage, and it would be hard to resale property in a flood zone.

So, I found a note buyer that said if this property was sold with seller financing to the homeowner fixed up, they’d buy the note on the property after 2 months.

They’d require:

10%-15% down payment

10% interest rate

15% discount

And flood insurance

Do you think that would make this property a easier to resale, or would this be a deal you would pass on?