Part of apartment complex is in a flood zone, what would you do?

[Pat Jackson]

As of 8.18.2020 my partner and I are under contract on a 64-unit in Missouri.  It's a wonderful value add deal.  We learned early on that:

• -3 of the 6 buildings are in a flood zone
• -the current owner has a loan, this lender doesn't require flood insurance
• -1 building took on a little water at one point during the 12 years the seller has owned the complex.  For the record I believe the seller.
• -we were quoted some private flood insurance around ~$1800 for what we thought was adequate coverage for all buildings, underwrote that number, and moved on

A little further along we learn the flood zoning is zone AE, private flood insurance isn't much of a thing for an AE zone, and FEMA flood insurance is expensive. Really expensive. As the zoning sits now we believe that only 2 of the 6 buildings are in a flood zone (instead of 3 out of 6), but they would need full replacement coverage of $500,000 a building. It's more or less a deal killer at the quoted prices.

Walking the property it doesn't "feel" like it's in a flood zone.  The stream bed in question is small/ephermeral, and the properties haven't flood in 12 years, even when the local area has seen some massive flooding in the last decade.  

Any advice on how to get an updated flood certificate? Any advice on having FEMA survey and potentially rezone. For the record my parnter and I want flood insurance. If units flood we want to be able to file a claim. There just isn't a way on this green earth a flood is going to total one of these buildings. I'm optimistic this challenge is surmountable.