Even then, it's tough because that property is out there for the world to see. 

and they charge per door and not sure if they even offer everything that I want. 

Start there to see if it is even worth your while.

It took quite a good time (~6months) even with a property manager but finally found the renter after rent decrease by 200$.

Even if straight off a cliff. 

Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

While the rare “killing” can be done, the vast majority of deals, even ones by professionals, are done within market pricing parameters.  

Even with that, I think we will still be way ahead. 2 bed, 1 bath, 1200sq/ft, detached 1 car garagePurchase Price: $38,000Repairs: $20,000ARV: $96,000 (based off Zillow, but a local real estate agent thought that was pretty accurate)Mortgage: $430Insurance: $55Trash Included: $25Rent: $1,000We are now going through applications for our first tenant. 

It was free so worse came to worse I would break even How did you find this deal and how did you negotiate it?

i say that not to discourage you, but so that you have a realistic picture of what to expect.as @Travis Timmons alluded to, you need to be in a strong financial position to even think about starting to invest.