Can you afford to buy in a location prone to natural disasters?

[Eric Fernwood]

Natural disasters happen. Even though the odds are small, you cannot afford to have one happen to your property.

Why?

Your property isn’t the issue. Insurance will pay to have it rebuilt.

The problem is the community. Jobs, stores, roads, doctors, gas stations, everything is gone.

Without jobs and services, tenants will not return.

Debt service, taxes, insurance, maintenance, and other expenses continue without interruption. But you will have no income to cover these costs. Maybe for many years.

Below are the top states prone to tornados:

1. Texas
2. Kansas
3. Oklahoma
4. Alabama
5. Mississippi
6. Illinois
7. Iowa
8. Missouri
9. Florida
10. Nebraska

I view natural disasters like I view cancer. The odds of getting cancer are small, but if you get it, it is devastating, and “odds” mean nothing.

You can invest anywhere. Why roll the dice with your future? Pick a location with low natural disaster risks.

If someone has a different perspective, I’d love to hear it.