If it's possible to alter the grade of the land or improve the drainage, and the house only got an inch or so of water in it, that house may escape flood damage next time. 

@Jerry W. lol @ getting mad because someone else makes a buck :) There seems to be quite a few suggestions on here that property owner try to get in on action but that business model exposes owner to a different set of risk... insurance company will also want to alter policy to reflect that... is there any market data suggesting the vacancy rates with that model is lower than say hotel vacancy rates?

Altering the grade of the land around the house can make a huge difference.

FM perspective, as per the document, is investors are altering the market conditions (sec I) by closing < FMV.The key is the history of the neighborhood, which is why any investor focuses on RE in a very well known area.

They claimed on the disclosure that no violations of laws or regulations regarding the property, or litigation, and claimed no material alterations were made. 

You are correct, we have recently altered our program.

The companies that support our properties primarily use apartments.com The prescreen questionnaire we require them to use: Previous Address Desired Move-In Date Do you get government assistance for your rent *Any EvictionsCredit Score Range (We provide the minimum required to qualify)What Is the Reason For You MovingTotal Number To Reside In ResidenceDo you own Any Pets If Yes What type of PetDoes Anyone In the Household SmokeDo you have renters insuranceWill you require alterations to the buildingIf Yes please describe the alterationsMonthly Family IncomeHow Did You Find Us

Just cause a seller does not want to sell does not alter my position as a principal.

This is especially the case if you are going to be on the hook for well over $100k.That is a life altering amount of debt.I know many people (mainly attorneys) whose lives are TOTALLY ruined due to the amount of student loan debt that they have. 

You can without question alter it so that it can work for simply owning and managing properties, but the vast majority of the tools and structures built-in are for a business that operates on revenues and vendor/labor costs, and not necessarily gross rents and property expenses.