Under contract on a Home in Flood Zone A - should I bail on the contract?

[Katie Camargo]

I am under contract on a lake front house but still in the due diligence period - I just learned that it's designated flood zone A. I plan to short and/or mid term rent it out and the numbers look reasonable without flood insurance. Rerunning them with flood insurance, they look ok but I'm worried about the impact on resale. Does anyone have a sense of whether flood zones impact the resale of lake front houses? 

[Bill Le]

Not a flood zone specialist but I don't believe it would impact your resale. It's not like people won't know that the property isn't in a flood zone; if they finance it through traditional financing then the lender would most likely require that they carry flood insurance.