Seeking some expert opinion on this one:
Loan to a business to purchase land with a hunting cabin and detached garage. Both structures are in a flood zone. Intention is to rent this out. The appraisal makes it clear this is a dwelling/house that is used like a hunting cabin, but it's capable of full time occupancy - "highest and best use of this property is considered to be for recreation, and residence."
Been reading the final rule, particularly the discussion about the definition "residential property" as well as rental. Would flood insurance be required on the detached garage? Can you consider the cabin intended to be actually occupied by a resident, or no since although it's a dwelling, it will be rented out more as recreation (I'm thinking like a business) vs as someone's home?
The opinions expressed are mine and do not necessarily reflect those of my employer