Flood Zone Multifamily

[Scott Royer]

I found a completely remodeled duplex at a steal of a price.  It meets all of my criteria except one, it is in a flood zone. This flood zone happens to be in and up and coming area around a favorable market.

With the flood insurance included in my expenses, the property will provide a 18% year over year return.  Am I being too particular about wavering on this property because of the inherent risk?  Or will the insurance minimize my risk? The cash seems too good to pass up, so I will appreciate hearing what others have to say on the topic.