@Jeremy Brown,Does he have any insurance that can help keep his rent current while he's laid up?

Our Realtor freaked out just by the fact that we had to sign a disclosure document to even see the property, as the listing Agent's company did not want to be held liable if anyone was dumb enough to enter without the proper protective gear.

I just moved back into our River property and our Flood Insurance has tripled to over $3000 a year.

I would pass just on that basis but make sure your expenses are realistic before you do that: taxes look high, vacancy looks high, insurance looks a little low, and property management looks high.  

I'm lookin for someone licensed and insured for a complete rehab in Evansville- if everything goes well with this house there I'll be more work for them down the road.

Check license, check references, check insurance (From the insurance company directly), don't hire the lowest bidder, don't hire the contractor recommended by the wholesaler.

Submit whatever documents they want updated, wait for response.

Make sure to make notes and document conversations with dates. 

Is there some kind of document we could draw up that would make the owner (and us) more comfortable? 

I would be glad to discuss a few providers as well as contacts for inspections, insurance, and closing attorneys.Good luck!