Questions about Investing in a Flood Zone / Flood Plain

[Jeremiah B.]

We just got a great deal under contract, with the one caveat being that it's in the 100 year flood zone.  

At a high level, this will be a buy-and-hold rental for us.  The property is newer house (2001) and has never flooded.  An elevation report has never been done, but the county maps place it on the 100 year flood plain (these maps will be updated next year).  We will pay in cash.  We will shell out the money for an elevation report during our due diligence, and will get flood insurance (we will back out if the flood insurance is simply too high to sustain).

But my question and thoughts are two fold, and I'm looking for thoughts on both...

First, as a landlord, what additional information do we need to do to rent the property?  Our plan is to have a signed 1-page addendum stating that the property is in a 100-year flood zone, and to encourage the tenants to get renter's insurance with a flood rider.  This would be included as part of the lease.  We do not expect the flood plain issue to affect rental amount or the number of prospective tenants interested.

Second, what challenges will this present in the future when we try and sell it? Will it affect the sale price, and if so, by how much?  Will it affect the time to sell, and if so, how much?

What else are we missing?  Looking for some guidance on this!