Duane,I do not believe that need for Flood Insurance for your mortgage will be impacted by raising the elevation of the building. 

The raised foundation does have an elevator access as well as outside access.

Some nature-inspired artwork would help to elevate the space as well, but I wouldn't poke any holes in the walls.

I wasn't comfortable with the elevated carrying costs as a newbie, knowing that the rehab could have been a disaster and the possibility of cash-out refinancing is never a guarantee.Lessons learned?

I like their app, and I feel like the hardware design has an elevated feel over the competitors.

On the other hand, because I'm buying it at a discount I kind of see that as being able to resell it for free in a pinch, but that assumes the market stays elevated and I don't like making assumptions.

Check out the full property pictures at Elevated-Stays.co What made you interested in investing in this type of deal?

(Energy Efficiency, Water Conservation, Seismic Retrofit, Resiliency, & Renewable Energy)PACE is 100% Financing, Non-Recourse, Terms to 30 Yrs with Low Fixed Rates, Transferrable, Payments paid back via Property Tax bill, Has the ability for payments to be passed on to tenants in a NNN situation, CLTV to 100%, Will Finance up to 30% of Stabilized Value.Examples of PACE Improvements: Cool Roofing, HVAC, Windows, Doors, Insulation, Chillers, Elevators, LED Lighting, Solar, EV Charging Stations, Daylighting...Hundreds of Improvements will qualify depending on what each state allows.Cathy

His suggestion was a teardown and rebuild of the rear building on elevated footings/pilings. 

This can cause a market to stay elevated more than you would expect until they eventually need to sell or reconsider those emotional reactions.