I recently backed out of a deal out in Harrisburg due to being in flood zone, I was informed by my realtor that it costs $1800/yr flood insurance policy alone.

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Should I go through with taking ownership of the property and try to salvage it for profit or do I refrain from even involving myself in the situation as it may cost more than it's worth to save it?

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

I would like to enter the landscape of real estate investing, but the area I live in has a barrier to entry with regards to cost.

Cash flow has been hampered by an increase in cost of ownership recently, specifically insurance. 

Do you have a preferred type of property and price range you're looking for in general (knowing the costs can be different based on they market)?

Here's a fundamental explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

I understand I can increase liability in each individual landlord policy, but one single umbrella policy is much more cost effective when I have multiple properties.

For most investors, to provide true separation would be cost prohibitive (between $10k-$15k).