Are Flood Zone Areas A Bad Idea?

[Lee Castro]

Is it a complete no to buy a property which has experienced massive floods? 

I have found a house which has had 3-4 feet of flood damage during a previous major hurricane but it has a really good purchase price and ARV.

Is this still a major no?

[Jack Smith]

I don't think it is fair to write any property off solely based on location. However, Matt is correct that the flood insurance could be pretty steep. You can get your insurance agent to quote the flood insurance to see what you are up against. If this is a hold property, you will want to make sure your "Loss of Rents" coverage is strong since this area is susceptible to flooding. After a flood, you may need to have the tenant relocate while you clean up and repair.