Do NOT Forget to Check For This BEFORE You Buy Your Next Rental (Flood Plains Crush Cash Flow)
youtu.be
The video emphasizes the importance of checking if a rental property is in a floodplain before purchasing it. The speaker explains that floodplains can be categorized as not in a floodplain, in a 500-year floodplain, in a 100-year floodplain, or in a 100-year floodway. The 100-year floodplain and floodway are the most concerning because they require additional flood insurance on top of homeowners insurance, which can be expensive and impact the property's profitability. The speaker gives an example of a property they recently purchased where the floodplain went halfway into the yard, but they were able to obtain a flood certificate to confirm that the home was not in a floodplain, and therefore did not require additional insurance.
The speaker then demonstrates how to check if a property is in a floodplain using the local MLS platform or the FEMA website. They encourage viewers to do the same before purchasing a rental property. The speaker notes that not being in a floodplain can increase the value of a property by up to $20,000 and make it more attractive to potential buyers. They also mention that not having to pay for flood insurance can increase cash flow for rental properties.
Overall, the video stresses the importance of checking if a rental property is in a floodplain before purchasing it, as it can impact the property's profitability and value. The speaker provides helpful tips on how to check for floodplains and encourages viewers to do so before making a purchase.
The video emphasizes the importance of checking if a rental property is in a floodplain before purch