You need actual hard fast numbers for:a - Existing debt  ("...could be anywhere between $100k-$120k..." is useless info)b - Rehab needed  ("...gonna need at least another 15-20k..." is also useless)c - ARV  ("The ARV is about $166k.." again, useless) d - Rent (unknown, but critical to analyze for a rental)e - taxes and insurance as a rental (unknown, but critical to analyze for a rental)f - cash you have to work withMy recommendation would be to get the above information as exact as you can...or, pass on the house. 

We do have a mortgage so insurance money goes to the lender which then does inspections to release the money.If it's still a desirable area it will still rent post flood.

We also of course have a large multiple insurance settlement that I want to invest intelligently which I'm thinking will make all of my goals possible.   

What are your plans for the proceeds?

Insurance institute recommends original pine-sol after a flood.

You will need to have enough cash to not be reliant on proceeds from Sale #2 to fund your purchase, and it will add a $1500-2K to your transaction costs. 

@Aaron Johnson1-4 family homes are FHA eligible.FHA limits are based on each county around the country and the owner's ability to pay.FHA includes mortgage insurance for the life of the loan.you can put down as little as 3.5% for a 1-4 family home.there are some allowances for adding closing costs to the loan.

Purchase Price 175000 Currently Value   186000 Equity   45600     Mortgage, Insurance, Taxes   1165 HOA   120 Maintenance 10% 145 Vacancies 10% 145 Management 7% 100 Tenant Placement 8% 121 Total Costs   1796 Rent Price   1450 Equity   200     Monthly Cash Flow -346 Yearly Cash Flow -4150     Monthly Cash + Equity -146 Yearly Cash + Equity -1750Thanks for all comments in advance! 

Insurance?

Who is paying closing costs / title insurance?