If you want to be in the short or mid term rental business, I would go and try to learn about how to run those kinds of rentals because its a completely different kind of business than long term rentals.

Run credit and background checks, actually call the listed referrals, and ask for bank statements.

Any trust worthy realtors for that area and companies that may run the properties cleaning services ? 

Quote from @Zachary Deal: @Joshua Kavadi As @Zachary Deal and Chris said, you'll need to know that not every deal is a home run or even a triple.

Once application is finished you can run credit, background and eviction report for $15 your cost, or charge tenant I think it's $35.

He wanted to run it by me.

Otherwise reducing the premium is not simple but some engineering firms specialize in flood zone updating.  

If you run into DTI issues as mentioned you could look at DSCR to purchase the SFR. 

Even in up and coming neighborhoods, you can find vacant run down houses and turn a "quick" 20-50% return.

Let those be the backbones of your downside, weigh it out then hit the ground running.