I'm curious for those of you who currently own investment properties in those areas: Are you worried about insurance premiums skyrocketing and potentially being left without property insurance (like some places in Florida)?

This is not worth the 27200k in potential profit plus taxes.Don't concern yourself with the 1% rule. 

Income potential, location and price of property How did you find this deal and how did you negotiate it?

I also have a 300sqft detached garage which I keep all my tools in, potentially could convert that.

ive got a potential seller with an existing mortgage left over of 190k an the home arv is abt 310k how would i go about my offer price formula with the existing mortgage? 

It is my understanding that if you enter into the lease knowing of the foreclosure and placing a tenant anyway, then the lease is essentially deemed invalid as you and the tenant knew that it was a matter of time before they were evicted.Also there is an assignment of rents in residential mortgages as well, and doing this may open you up to a lawsuit by the mortgage holder since you essentially stole potential rent from them.And finally if the plan is actually to buy an HOA lien and wait until a foreclosure, I think that falls under unethical practices and would never do that, or encourage anyone else to either.

You will learn alot of lessons quickly, build wealth, and potentially lower your cost of living.

This could potentially reduce or eliminate your state tax liability on the property with a gain. 

To me the $1500-$4000 a year delta between a 12% and up to 20% is not worth the risk of potentially losing a significant portion of my capital.

There are a few good properties on the market that I feel have potential. - I have only ever purchased a turnkey property.