A flood plain is a flood plain. We just NEVER know when or how severe the flooding will be but it WILL happen. As noted by Kurt basically no insurance for loss of income for homes in that area and thus banks find it difficult to loan if it is a mobile home park. Our major problem after the flood occurred was the elevation that homes needed for flood insurance and the ADDED cost for such including electrical and sewer connections. Your rents will always be DISCOUNTED compared to park not having that MAJOR problem plus how do you tell people your homes may never flood with the elevation but your car and access to your home will be interrupted perhaps for days. We have noticed that if the creek was blocked by ice, trees, mobile homes etc. the level of flood water could be much higher… Generally if the deal is not at least a 20 cap rate your time, energy, financial return over the ownership of the property probably is questionably. Just my observations from being an owner going through a flood the park had NEVER experienced before and was UNEXPECTED to be so severe.
Carl, thank you for your “worst case scenario, risk/reward/potential hardship for people” it is much appreciated. Never thought of the blocked-floating stuff as a potential problem. I will be passing on the park.
Phillip, thank you for the answer of surveyor on who to call.