I've heard about that FHA rule as well, but I haven't been able to confirm it yet.

But this will put in in a Maxed out HELOC with no Hard money in reserves to put down in the next property.

That would easily allow you to get max rent and possibly lower the repair / cap ex reserves since you're fixing a lot of stuff up front.

Knowing that the building was high on a hill, about fifty feet above the water, I started doing research and found the following, which was later confirmed by my lender that we did not require food insurance.In my case, just because a properties address is designated in a flood zone, there can be buildings on the property that do not require the insurance.

Others from this area will confirm, Pittsburgh is full of working-class neighborhoods that change radically on a street-by-street basis.

I have great credit and solid reserves which I do not want to tap into and pay income taxes on.Thank you all in advance for sharing.

Luckily we had reserves and outside cash flow we could bring to the project. 

I have confirmed this with my firm, another top 4 accounting firm and a few fund managers.If you want to discuss this further feel free to shoot me a PM here or on LinkedIn.

And, now that the capex reserve account is high enough from putting away 100% of net income, I won't be renewing that warranty. 

Confirm with your new Advisors what might work best.Good luck.