High Flood Insurance? What to do?

[Alex Hake]

Hey Everyone,

I am looking to invest in an area that is a high flood risk. It is a small coastal neighborhood where their seem to be a number of deals but I think the flood insurance on any of the given houses might prevent any of them from cash flowing.

Any advice on how to invest in an area like this? I know its harder to get a loan, and a lot of people I know just buy with cash so they don't need insurance, but how do you finance deals like this? How to get them to cash flow?

Thanks,

Alex Hake

[Jeremiah Williams]

Hey Alex, I recently looked at and evaluated a potential property that was in a flood zone. Based on the premium that the seller was currently paying, the house could've cash flowed. 

Unfortunately, flood insurance is going up like crazy every year so it is practically impossible to make any money or to even predict what you're going to be paying in 5, 10 years. For that reason, I'm going to steer clear of any properties that are in a flood zone.