I'm unfamiliar with what would  be considered expensive, reasonable, or what levels of insurance would be necessary for our first deal. 

Price point, area/location, individual investors abilities or finances, individual investor's risk tolerance or business plan, level of rehab, etc.As an example, the 70% rule (more appropriately should be named "70% guideline), is a simple back of the napkin analysis and is NOT ever to be used to make your final purchase decision.

On September 4, our ground-level unit was subject to an immense amount of water damage from a burst hot water heater from the unit above us.

One rule is a certain percentage of affordable housing for different levels of low incomes.

I guess the obvious answer is we could structure anything we wanted, but this is definitely a level up for me. I’d love to hear any thoughts or consideration.

I know with click lock you have to cut out the plank and essentially glue another in (which can get hairy if the floor isn’t perfectly level).

I think you are right to a degree - things here in Las Vegas still seem like its a hot market however the houses appear to be sitting for a little longer than they were about 6 or 8 months ago - the correctly priced properties seem to be selling and the properties incorrectly priced, I think the average Home Buyer is saying "no way" to the high price and waiting for it to come down to a reasonable level 

A lot of this is going to be what fits best for you - your comfort level and your experience level. 

The new property will likely need some work to get the units to the level of my current property.

The question is whether you can properly screen them and what level of risk they present.