On my way out to see some places of interest and run some errands, so please bare with me if I don reply instantly.

Then you're safe with a free cash flowing property.Non-recourse 100% instant financing is like mana from heaven.

I hate to let go of the $50,000 that not selling it would earn me (a little profit + no sales costs), but at $5,000 a year in flood insurance rates, if the worse happens, that instant equity will be slowly eaten up - and I bet that appreciation on the peninsula as a whole will be much less than the 5-7% I would like to see because everyone will be in about as bad a situation or worse than I am.

Its the ones that give up because they're not seeing the instant success or because they stop believing and decide to move on to something else are the ones that end up stuck in the mud because they're constantly moving on to something else.You'll find a niche that works for you eventually.

I'm not a fan of 401K's (go to 401kaos.com, download/read the free book, and you'll understand why), but I generally recommend people invest whatever is necessary to get the full match - it's an instant 50-100% risk-free return.My wife and I are going to start 72t distributions on our trad.

Your instant issue sounds like an unavoidable plumbing repair issue.  

The young couple got instant equity.

Paint is the cheapest and easiest way to make a place look nice.. paint walls, also paint cabinets/vanities and add new knobs will instantly make it better!    

My wife is going to be getting her real estate license for the obvious benefits - we can get access to houses instantly, make offers instantly, MLS access, save on commissions ect...Will she have trouble finding a broker to sponsor her if shes only going to be doing 15-20 deals a year with me?

I do wish you success, but don't believe in the instant bucks!