Fliperati

Over the course of attorney review, the sellers disclosed that their home is located in a flood zone.  Clueless about the implications of this revelation, my heart immediately sank.  My thoughts drifted to the small canal that runs behind all the houses on that street, imagining a torrential rain swelling the waters and submerging my very first investment property before I even have a chance to change a light bulb. 

Fortunately, I didn’t let my imagination get the best of me.  A little research showed no notable history of flooding and I began to think that the canal was a blessing instead of a curse, given that it was probably constructed to manage water runoff and prevent flooding.  However, even if I did not think flooding was a potential hazard, there was still the concern that potential buyers of the renovated property would not be so easily comforted.  Also, the cost of flood insurance could provide justification for discounting the resale value of the property against the comparables I had been using.

I decided that I would use the home inspection, scheduled for this Saturday, to make the final call.  If there is no trace of water damage or excess moisture, I can proceed with the knowledge that an inspection at the time of resale will also reveal no evidence of water issues.  Good plan, right?