The thing about the bad areas...Great insight Matt, I will have to keep that in mind when I canvas areas to eliminate listings to research!!

Might be a better bet to develop a relationship with a Realtor or ISA who will get you the info you need from the MLS system and eliminate the gray area with your job.  

I know this doesn't directly answer your question, but setting something up like this for the future would likely eliminate this problem next time. 

So not only can you put more cash in your pocket getting rid of flood insurance, you can also eliminate a big risk of uncertainty of what happens with that insurance down the road.

My main concern is that eliminating a common bath on the upstairs where all of the bedrooms are, would force those not in the master suite to use the bathroom in the basement.

Given the pricing is the same, use the list below to eliminate the policies that do not include as many of these coverages/forms.1)  To limit your 95% of your financial risk, I would start with the following - $1M Liability, Replacement Cost, Agreed Value, Special Form, and Loss of rents.2) Secondary coverages you may want to consider if your building is susceptible to these risks, Building Law and Ordinance, Sewer Back up, Contents coverage, Flood.

But the secret to getting more deals done is a quick elimination process.

Water is covered by tenants on a single family. i've never seen a client pay for that so you can probably eliminate that expense.

Of course the house would be used as collateral, and we dont need 75% LTV could even do 50% which eliminates most of the rtisk for the bank.Anyone have any suggestions or banks in Florida that can help with this issue?

Wells Fargo paid it out of their proceeds, it was not debt eliminated by the foreclosure, they wrote a check at the end of escrow.