Flooding in Memphis/Nashville/Chattanooga?

[Bonnie Low]

I'm an out of state investor looking at certain metro areas of Tennessee to purchase cash flow properties. I'm noticing lots of homes coming up in FEMA flood zones. My questions to property owners in any of the metro areas of Memphis/Nashville/Chattanooga is how often is flooding an issue and do you have difficulty obtaining flood insurance? We flipped a property in California that sat just above a creek that floods about once every 10 years and we had a heck of a time getting flood insurance for it. We couldn't turn it over fast enough!

[Lynnette E.]

I invest in a rural area with some flood zones.  The zones have ratings or levels.  

Example, one property is in a flood zone that is protected by a physical structure.  The water would have to rise 50 feet to flood, and the dams would be opened well before that happened.  

Another house is in a flood plain .  When I rehab it, I will have to put in a pass through foundation.  Cost will be about 25% higher for the rehab because of being in a flood plain.  Funny thing is that the railroad tracks are also in this flood plain.

Another property has a small corner by the creek that is flood rated for a 100 year flood, but no where near the house.

Flood insurance is about twice the cost of regular insurance. I never heard of anyone having issues with the flood insurance, but then again, I am in a rural area and TVA dams are here.   As a general idea, regular insurance is about one month's rent, as are property taxes.  So investment wise flood, regular insurances and property taxes would take up about 4 month's rent.