All Topics / The Treasure Chest / A bit left field?

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  • Profile photo of ijcijc
    Participant
    @ijc
    Join Date: 2002
    Post Count: 28
    February 24, 2003 - 9:16 am

    HI all, I’m seeking some feedback please. I’m considering purchasing a buy and hold prop. in an area that does flood occasionally. Last time 5 years ago- all up 5 times in 132 years. Cost is about 60K and rent return is about $120 pw. Therefore cashflow positive. The house was built in the 1870’s- hardwood everything and restumped with concrete stumps. Suprisingly the structure seems fine and good rental from all other criteria. Ofcourse it’s the flood thing that bothers me but apparantly people from this town just lift up the rugs and hose off and start again. I’m wondering about insurance implications and anything else I should consider? Thanks

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763
    February 24, 2003 - 11:31 pm

    hi,

    I’d certainly be considering this, but only provided:

    1. I could get insurance (you’ll need to ring around and spell out that the property is on a flood plain)

    2, I could get finance. No doubt some places will knock you back on the basis that it floods.

    Again, this is a matter of phone calls to various lenders.

    Cheers,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
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    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

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