In the case of a house in a flood zone, they will require a flood policy be purchased.The normal policy for a 1-4 family rental is a Dwelling Fire Policy (sometimes called a Landlord or other name by the company). 

Paying with a money order is a red flag that they don't have money in the bank.

You could defer any portion that is capital gains and get some long-term tax benefits by investing in Opportunity Zones. 

It appears to be a major red flag to me and I'd like to negotiate to have them remove it or find another company.

Red up on wholesaling. 

You could try opportunity zones.

We started with Airdna and then used Pricelabs to verify profitable zones. 

If it happens again, red flag, and they will have 30 days to leave and/or include that you have the right to  do progress checks with their Program Advisor for the first 90 days once a month.

The land meets the zoning needs and gives flexibility.  

Initially, the back unit will be the Owners' home and the front unit will be a 5 bedroom 3.5 bath Air BnB or short term rental in compliance with City zoning for transient stay rentals.