All Forum Posts by: Jamie Young

I'm taking all this in, but wanted to take a quick moment to thank all who have responded. This community is by far the best I've been part of. 

Sounds like I should let the deal pass. I didn't mention it in the original post, but this would be my first deal. The last thing I want is to start my RE investing journey on the wrong foot.

I am willing to bet I could get it for less than $64K, but even at say $55K (middleman is in it for $50K), the risks mentioned are hard to argue and admittedly conflict with my objective to be as hands-off as possible.

Sincerest thanks to each of you for the feedback!

Hi All,

First time posting, but long time reader here. 

I have an opportunity to buy a fully remodeled 3 bed, 1 bath for $64K. It is tax assessed at $94K. My intention is to hold the property long term as a rental. Avg rental income for the area is $850. Conservatively, i'll assume $750. 

Assuming I come out of pocket for 20% down (12K), the monthly mortgage payment will be approximately $250. Quick application of the 50% rule:  Rental Income of $750 / 2 = $375 - mortgage payment of $250 = $125 left over.

However, as the title stated the home is in a flood plain. While the area hasn't had a "declared flood" since 1985, i'm sure there are occasions where water is bound to cause problems, being located in a flood plain. Unfortunately, I can't say to what extent which is causing hesitation. Financially, I'm aware insurance will be heavier--a friend of mine lives directly across the street shared his insurance is $1500 a year, or $125 / month (twice the average rate for the county).

My questions is, how many of you have experience with owning a rental in a flood plain? Is this worth consideration? Or, am I being overly intimidated / concerned? Are there any learnings anyone with experience would like to share? What am I missing?

Thanks in advance for any insight.

Just signed up. Thanks for organizing, Shelly!