Buying house in Flood Zone

[Alon A.]

Hey guys 

I want to buy house that is located in flood zone 7/10 , the house is in South Carolina 
the house is in good neighbor hood and good schools . The flood zone is a bit dissatisfied me 

I can invest in the house 125K + 40K rehab

The house ARV will be 250K-280K

you think it’s good to do Brrrr or just flip and sell it ? 

[Troy Gandee]

@Alon A. Flood zones are very common in SC. It's not necessarily indicative of a house that floods. It just means in a geographical area that could flood. The flood rating is based on the likelihood of a flooding event.

The more important thin to be aware of is the 50% rule with the County. If you spend more than 50% of the assessed or appraised value of the home (not the land, just the home) on renovations, you will then have to adhere to the contemporary FEMA construction standards, which usually means elevating the home. There can be exceptions, but it depends on the home and the area. You should call the County's permitting office and ask them about that before you proceed. Cheap deals frequently encounter this issue because the rehabs are to extensive.