The 40213 for first SFR investment

[Matthew Vallandingham]

Hello, I'm brand new to real estate investing, I've read several books and listened to many BP podcasts and others. I'm looking at houses in the 40213 zip code. My concern is the flood zone (which is a huge portion of south Louisville), I looked at one house and it is in the FEMA flood zone, however the house has never flooded since it was built in 1963 but flood insurance is an extra cost which I would have to include in my numbers.

Does anyone have any experience with 40213 and/or buying in a flood zone?

[Erik Hitzelberger]

@Matthew Vallandingham

As you mentioned, it's important to factor the cost of the flood insurance into your numbers. You will find that you need a pretty significant discount to offset this expense when you do the math. You will also have to contend with the flood zone issue when selling the house at some point in the future. Personally, I avoid homes in flood zones because I don't need the hassle and the numbers aren't that appealing.

As far as 40213 goes, the zip code encompasses a diverse area. Audubon Park is much different than the area off Indian Trail. Drive the neighborhood and decide whether you want to invest your money there.