Floodplain, Tear Down, Rebuild Questions

[Jenny D.]

BP Community...

I've tracked down a prime piece of land in a coveted neighborhood in Austin, TX. There is a vacant house on the land that that is a tear down. Discovered the land is in a flood plain in conversation with owner (who wants to sell). I want to work through the numbers to see if this is an opportunity. Here are my questions:

1. What questions / concerns do I need to consider since the property is in a flood plain?  Is this kind of opportunity too risky for investors? 

2. Where do I get info on costs to tear down in my market?

3. Is there a rule of thumb for cost per square foot to rebuild?

I'm learning all I can in this space and would appreciate any advice or recommendations on the way forward.  Thanks!