Buying a SFH New Construction with lot partially in floodplain

[Andres Perez]

Hi BP!

I am under contract for a new construction SFH in Denison, Texas (purchasing as a rental). The property is very nice but I recently found out that part of the lot is in 100yr floodplain. The actual construction isn't so there is no need to pay for flood insurance. I asked for a discount but the builder refused, given the current seller's market I'm guessing he feels he can sell elsewhere with no issues (which I'm pretty sure he would). We also realized that the lot is a double lot and includes a similar sized lot which is almost all in flood plain but comes for 'free'. And he is also offering to give away the contagious lot (block 27) instead of the discount so basically I would be getting 2 extra lots but most of them in floodplain A.

I'd like to check in with the BP community to see what thoughts they would have here. Given the state of the market it is not easy to find other similar properties quickly but the flood plain issue does concern me. It is also strange as there are no bodies of water nearby (attaching flood map for reference)

Would you move forward with this purchase? 

Do you know if you can build in these extra lots that are in floodplain if you add the proper elevation?

Any advice would be greatly appreciated!