A license is a license, it isn't like hiring a brain surgeon who went to Harvard vs community college. 

Allow me to put emphasis on estate planning attorney, just as your real estate attorney specializes in real estate and a brain surgeon specializes in brain surgery so does an estate planning attorney specialize in estate planning.So, what happens to your real estate properties if you died?

The idea would be for the tenants to pay for the Reconstruction so I don't need to go to the bank and pay for it out of my own pocket just to get it back when I sell it .  

Replacement Cost values themselves are derived using appraisal software by your Agent and the Insurance Company, or an appraiser, but they are not market value estimates, they are reconstruction cost estimates.

Apply the same ratio to the current value of the house to reconstruct a reasonable basis.

So the property owner would be compensate 300K in actual cash....if you'll notice our client would have been out of pocket for 200K after getting their payment and then paying for the re-design and the reconstruction needed.I tell you that to say that our client's attorney argued the point, provided case law, and (I believe) had their own appraisal to demonstrate a value that was more in line with what they considered fair.

The advantage to your strategy is that one could argue that in five years the majority of the reconstruction will be behind us and theoretically there could be more trade labor available at that time. 

I'm not sure if Indiana offers a non-NFIP insurance option or not but if they are like Ohio than NFIP is your only option... however not all agents understand how NFIP works or how to give you coverage options.If your main goal is checking the box for flood insurance at the lowest possible cost I would suggest asking the bank what is the least amount of coverage  and what is the maximum deductible they will accept - then get an agent to quote it that way.I'm NOT saying this is a good idea to insure your property this way - you really need to investigate the risk and talk with your agent on what your level of risk tolerance is.Many agents will try and quote it at the full reconstruction cost amount like it's an owner occupied property.

Develops or redevelops it.Constructs or reconstructs it.Acquires it.Converts it.Rents or leases it.Operates or manages it.Brokers it.Keep in mind, the RE pro text must be met for EACH property, unless you elect to aggregate them all as one activity.

I bought my house a couple years ago as a forclosure with a reconstruction loan, atm considering equity it has had a great roi.Hopefully it will sell at a nice profit in a few years, I would consider it an investment.Was also a good learning experience and trial run, a different type of investment so to speak.