Has anyone ever bought a park zoned by FEMA, flood zone X? Came across a party zoned this way and was curious if it is something experience investors stay away from like the park being in a flood zone?
- A park zoned
Here’s the link to the description of Flood Zone X. www.fema.gov/floodplain-management/flood-zonesAs you can see, it’s the most minimal of all flood designations. However, that being said, any flood designation can be a problem from a financing and exit strategy perspective. I would get a better handle on the worst case scenario (how many lots effected, the depth of the water, etc.) and see if it’s a deal killer. If you can’t survive the worst case scenario, then don’t do the deal.
Another option would be to offer a purchase price based on the MHP without the lots in the flood zone. Of course, the seller may initially balk at this and may have to be ‘sold’ on the idea to get a purchase agreement. The idea would be that any lots in the flood zone would be redlined to be taken out of service as they became vacant. This protects you from loss of income production while protecting future tenants from flood loss, solves the exit strategy issue, and may be more palpable to a bank. Please let the forum know what happens if you pursue this MHP as it would be, at least in my mind, interesting to know.Jim Allen
Have owned a park in a flood zone that never experience home damage but the ground was covered different times. Then a quick 5 inch rain flooded over halve the homes above the electric boxes and thus were uninhabitable according to FEMA. Looking into the eyes of our residents was heart breaking and HOW could I ask someone to come into a park knowing in the future it WILL happen again… I tried to sell it to the county for a day park but of course they wanted it free. Personally run and do not even think about it since that is a negative that is overwhelming–keep looking and continue your DUE DILLENGENCE.