My solution is for them to be able to sell the house for cash,as-is, and then combine that with the check from insurance company to buy a new house.

I'm relatively new here, as well, but I can tell you there's a huge wealth of info here on all aspects and angles of real estate investing from an incredible amount of combined years of experience.Much better than any paid program.

I think I will combine the two as much as possible through flipping and holding when I gain more experience under my belt.

Especially given the circumstances the the California guys and galls have indicated: properties are selling fast and apparently it is not uncommon to have combined commissions at 5%.I have contacted her, and I gave her a list of the comps in the very near area.

If you combine that with a commission on the buy it is possible to pull some cash out of a low down payment bank financed purchase.  

Buy it then combine it as one lot.Definitely2.

This combination shielded me from competition from both homeowners and investors, and I think allowed me to get a great deal.

Your profit is ultimately the combination of every penny that left your account and every penny that got put back into your account.The purchase HUD probably involved writing a check (money leaving your account). 

Combine that with the absentee owner aspect without professional property management options, and I'm quite wary. 

I've found a 6 unit apt building for sell, asking is 159k, gross rent is 2610...Water and trash run 100 bucks a month combined on average...Some more some less.