It will let you lock up the new property and then sell your portfolio  with a lot more flexibility and risk mitigation.

It might depend on your state, but you could do the loan in your name and mitigate the risk by putting getting an umbrella policy.  

This is one way they mitigate their risk... if tenant stops paying you, you may stop paying them.

Nor are they able to provide any advice or recommendations as to what can and cannot be done to mitigate the exposure to flood losses. 

Maybe research steps and costs involved or hazard mitigation grants in your area to elevate home above base flood elevationhttps://www.fema.gov/pdf/rebuild/mat/sec5.pdf

By screening properly, the risk to your cash flow and asset will be mitigated.

I'd consider this a C neighborhood and can mitigate the risk by installing motion activated flood lights and security cameras.

literally millions have done this.. some its fine other with disaster results.as long as you buy quality assets you mitigate risk.. you buy ghetto type properties and end up walking away you just put leverage on your personal resi and lost the moneysame as borrowing on your home to play the stock market.. if you buy blue chips probably OK you try to use the funds to day trade and get wiped out .. not so goodmyself personally I keep personal resi as non touchable..  

Most people don't realize it is fairly simple to mitigate if you follow these 8 steps.https://www.cdc.gov/mold/cleanup.htm

They will let a property fall apart instead of making simple repairs to mitigate the damage.