Fourplex in flood zone

[Ekaterina Gelashvili]

Hi everyone!

Is it good idea to buy a four family house in flood zone? Flood insurance is $390, three of four units are rented. Property is in Baytown TX. Asking price $165.000 and rental income is $2575.00, taxes $4695. How much would you offer for it?

Thanks for all your input☺️

[Robert Gandy]

@Ekaterina Gelashvili, I have a SFR in a flood zone in louisiana that requires flood insurance at $2,000/yr, because the home is under the base flood elevation. If the 4plex is above the base flood elevation, your flood insurance is likely between $400 and $600/yr. You will need to get a flood elevation certificate to determine if the 4plex was grandfathered in to a lower rate, if you will need to pay a higher rate, or if the 4plex is above the base flood elevation level.