Also, separate bank accounts from day one, get insurance (builder’s risk is a lifesaver), and don’t skimp on an attorney when setting up your partnership.

What sorts of questions can I ask her to learn how much risk this is? 

This establishes the legitimacy of the arrangement and protects against audit risks.

just to be blunt, that is expensive and high risk. 

You can put the SEV value in this website for a tax estimate.  

Depends on your risk tolerance.

Purchase price: $44,000 Cash invested: $75,000 This was a huge undertaking, but the risk reward ratio worked out great.

My point is, you are on the right track with your thinking, so now to the "HOW" to actually get in, if like me, you don't have an in or connection.First step is likely to get licensed, if you aren't already there are some other ways to get in the door and be helpful but licensed means they can pay you cuts of the deal and its less upfront cost and risk to them in helping you out.  

Doing a Fix and Flip in a flood zone is totally fine, but there is obviously added risk on the exit.

Risk is the rehab part.