I know there have been quite a few threads on parks in floodways, but I’m still trying to get my head around this. I found a park in a tier 1 MSA in Texas that the owner wants to sell, but half of the park is in Zone AE, which is considered a Regulatory Floodway, and the other half is in Zone A. There are only 2 homes not in the floodway on the current map. I’ve called the businesses in front of the park to see if they’ve ever seen or heard of it flooding, and they said they haven’t; however, if you look at the FEMA flood map it looks scary.
There are 31 occupied lots. Rents are at $200 and can easily go up to $350. It’s on city sewer and city water, and it’s in a prime location in the town.
My main question is would anyone even put offer on this thing, i.e. 50% of occupancy at a 10 cap, or is it even worth messing with? I keep going back and forth thinking if I get it at a really good price that would outweigh the risks associated with it being in a floodplain.
Thanks for any input you have.