Flood zone help needed

[Shayla Fletcher]

Can someone explain the risks of purchasing a home in a flood zone? I am working on a condo deal (8 units) that cash flows two thousand dollars after all expenses are paid. I received the appraisal yesterday and it included a warning about potential severe increases in flood insurance costs in the years ahead. I have read many things on the internet but I have yet to find a simple summary of what to expect in the years ahead. Also, I asked my insurance broker and she said she couldn't really tell me about future impacts because it is a federally managed program...please help