Our insurance company (State Farm) doesn't cover flood, so our flood insurance policy is through FEMA's NFIP (national flood insurance program).

You're barely doing new carpet, paint and replacing some doors on that budget.The issue (at least in DFW) is that B class doesn't lease at all.

(If your purchase agreement doesn't have that it's at least two revisions old because I believe they changed it back in the 11/14 revision.) 

You may want to get an attorney and hope RTR doesn't sue you.There are numerous posts here on BP with warnings about buying turnkey because you pay top dollar.

One approach is to emphasize your reliability and track record, showing that a lower EMD doesn’t impact your ability to close deals successfully.

It's pretty much only used for properties that are so far out there that it doesn't make sense to have someone drive out to show it. 

I have lots of local connections with contractors, vendors and brokers, doesn't hesitate to reach out.  

Just make sure the grass doesn't just look greener before jumping.  

With $170k to deploy you most likely will have that all in one, maybe two deals, if it doesn’t go well you could end up way worse off.That said, if there are other factors like the property is a huge pain to manage or you are worried the neighborhood may actually get worse or you know you need a new roof in a couple years, then I’d consider selling.Also, even though you said it’s not a high appreciating area, do you think 1-2% is fair?

It just doesn't absolve them from the legal document they signed.