Birmingham Investment Property in Flood Zone AE

[Ajay Panwar]

Hi,

I’m considering a property for investment in the South of Birmingham. As part of the mortgage, I learned that the property is in Flood Zone “AE”. Thus it requires mandatory flood insurance. The insurance comes out to be upwards of $1000 per year. The seller is willing to give credit for the flood insurance for 5 years.

My question is, without thinking of the credit for a second; shall I even consider buying a property that is in flood zone? What is everyone's recommendation?

I think that it will be a hassle when I sell it at some point in the future. Plus if the flood actually happened, that would be disastrous.

Please pour your recommendations, suggestions, or if any of you actually bought a home in flood zone. Need help.