I would say that it is possible that you can get higher rents than that but while tenants live in a construction zone they won’t be happy and it’ll eat into your piece of mind as well since they’ll be requesting different items along the way to help deal with ‘being put out’.

@Neesa Patel one great option is to invest the funds into an opportunity zone fund.

Anyone else have any insight on if there is any restricted zones beyond the standard yucca valley STR permit ?

Zoning?

But for the number of homes that did get flooded, there were several that didn't - up to you to decide if the glass is half empty or half full.There are ways to mitigate your financial risk - look for properties outside flood zones (keep in mind that Harvey saw flooding in areas that were considered not to be flood zones but I'd argue that these maps become more accurate the more data we get).

Zoning. 

Go directly to the building/zoning/permit office and ask for them to answer that question. 

We decided it would be better to cap it off and go with a 3 zone ductless mini split to add home value and being able to list "heating & cooling" as a feature and command top rent for our area.The mini split option has some cons but is also way cheaper than replacing a boiler and it doing heating AND cooling is a nice benefit.

Very, very few houses in this area are less than 40 years old, but it certainly isn’t a war zone.

Walls were already bulging inward into the basement.I am a very raw newbie in this and I do not feel comfortable picking up the pieces of this house.  2 major floods in 10 weeks and causes were due to geography (not flood zone, just street sloping), it will flood again.