There are numerous companies that are now writing flood insurance.

And your adjusted cost basis includes all elements including depreciation and capital improvements.In your scenario you purchased your old property for $500K and sold for $ 1mil. 

It sounds like the lease (contract) has been breeched numerous times.

I'm okay with being patient so that I can offer those elements to a partnership or to have for diving in on my own. 

Our plan was to buy cash, fix the roof get a renter and take to a lender but I’ve asked numerous lenders and all need 6 months time to recoup the appraisal cost since the purchase price less 15% downpayment is the only thing we’ve found offered on this deal... it’s going to take 3 months max to make this happen so we are looking for a lender that will lend us about $70k on this house before the 6 months.

The worst thing you could do is not tell the true percentages you expect then a claim be up in the air whether you get protection or not.I have numerous clients who have airbnb's throughout the nation and the premiums often are higher than a regular secondary home/landlord policy.  

I've seen numerous business partnerships like this where both parties are happy.

However, mentors thrive on helping people and seeing the end result of their product.I'm sure there numerous people on BP that will help in that aspect.  

Listed price was $289,000, so I used the likely frustration and fatigue element of the sellers numerous failed closings as my leverage and presented an all cash, zero contingencies, and a 10 day close at $255K, which was countered to $263K which I accepted.

If this is the case there are numerous ways to structure that deal, but to offer a single simple agreement:The Pref is 8%.