Do not rely on it as legal advice.

People in Houston didn't have flood insurance because just as you said "not sure there is much of a risk"my house was flooded in NC during hurricane Matthew last year, not in a flood zone because "not sure there is much of a risk"If there is no mortgage, I don't believe you need insurance legally, whether or not you get it is 100% up to you.

I own the land debt free.Will banks finance these deals if attractive?

Legal counsel would be a good avenue to consider at this pointA couple of paths to explore:Did the Property Management Company have authority to re-lease the properties? 

                     $220 Vacancy/minor repairs/maintenance                    $220 a month for water/sewer/trash/landscape/snow (actual should be way less)                     $1000 debt serviceNET loss of $160 a month      The cash flow is terrible of course, but that is mainly from the outsized taxes which was from what I can tell from tax records an extra school levy, total taxes for 2016 were  $2341 on same valuation.

isn't that a legal requirement? 

We bought it at a 7+ cap so sale price was essentially price adjusted for the assumption.I would run two scenarios get the actually yield maintenance $ amount and add it to the purchase price and see what your model looks like after placing new debt and what your model looks like if the lender will give you a supplemental.What's your exit strategy and timeline?

I know the general principle is to refinance the property and pull out the cash to pay off any debt (Hard money lender, rehab costs, etc...).  

But beware, if you use Their title co. they may not search for, and not cover, unrecorded liens.....code violation fines, utility debts, etc.

Now wont the bank check your debt to income ratio.