Buy and Hold...in a flood zone

[Jeffery Scullark]

Long story short, ran the numbers on a property that looked like a great deal.  After getting prepared to make an offer, I looked up the flood zone information and, behold, it was in a 500 year flood zone.  After reviewing flood insurance on this property I had to pass but I am curious for my buy and hold investors how much weight do you put on a properties flood zone status?  Is it a deal breaker or risk that must be managed. How do you manage the risk?   Would you consider a flip but not a hold in a flood zone?  To this point I have approached properties in flood zones as a deal breaker but I am wondering if I am missing opportunities based on this logic.  Help me see it for what it is.