Late to this thread and don't get on BP enough, but I’m an Abilene investor/developer/flipper and an independent insurance agent here in Abilene as well. I specialize in working with real estate investors on the insurance side, developing cool/old buildings in downtown Abilene, flipping houses, finding deals, and I spend a lot of time looking at the Abilene real estate market. I invest in commercial, multi-family, and also single family residences.
First of all, don't be too scared of flood insurance! FEMA used to set the rates on flood insurance, and it was high. However, now we have what's called "private market" flood insurance. It's probably 1/2 of what the FEMA rates used to be. I'm talking as low as $300-$400 per year on a SFR depending on the value. Call or email me and I can help you on flood insurance as well as insuring the property while you own it or flip it.
To further my flood insurance point, I have several of my own buy and hold properties (both residential and commercial) in the flood zone and they are two of my best cash flowing properties in my portfolio right now. The risk of your property actually flooding in Abilene is minimal because the majority of the "risk" of flood in Abilene is due to creeks and not large bodies of water. So the damage should be minimal if it does occur. Plus, the city has fixed most, if not all, of the drainage issues in residential areas (don't hold that statement against me when you property floods though lol!). But I have been in the insurance industry for over 10 years and I have yet to have a flood insurance claim that I can remember locally!
Also, in certain cases, you can just carry the minimum amount that you have to satisfy your lender and if you are a cash deal or if you go without, just know that you are probably going to have to replace some sheet rock and flooring in the rare event that your property does somehow flood if you go without it. Whether it's covered on your insurance or not, it's not going to be a huge cost with a rental property most likely. We can discuss more on why in person or over the phone.
Part of the reason i'm posting is that I can likely help a lot of people on this thread and I'm sure a lot of you could help me as well. I can help you stay on top of lots of the topics above, be properly covered from an insurance standpoint, and keep your fixed costs low with things I've learned over the years (including local contractor knowledge).
Fun fact, sometimes a property being in the flood zone is an opportunity for an investor when everyone else is avoiding those properties. A good deal is a good deal. I certainly understand that being a factor that kicks a deal out of consideration (especially when you don't live here and don't know the different pockets around town), but I can help you both on the investment side of things due to my knowledge of the Abilene market, as well as my knowledge on the insurance side of things.
