Get your feet wet and prove yourself first.

The carpet was at least 8 years old (wasn't new when we moved in), and had been  through 4 flooding events from the upstairs apartment, never having been anything more than wet vacced afterwards), so it was likely  due for replacement  regardless. 

I think you will get further with that.And if you think her original lending docs were doctored, I would have your attorney request "wet docs" for review. 

Stick to what you know to get your feet wet.

Congrats Jodi,Sounds like you got a deal and times it right Hillary ,I’ve been listening ok’ing at flood deals for a while now , from the deals that came my way the wholesalers are looking for 60-50% of the ARV , that doesn’t leave you much room for error , market correction or stigma of a flood home even in a good area .Take off 10% for commissions, legal  & closing on sale , you are looking at best a 12/20% return on investment .Now imagine if the mold situation comes or contractor goes over budget , you may be stuck holding a wet bag If your plan is a rental than at least you have a plan B in place For the best upside of 20% I’d stay clear Of course if you can purchase at 35/45 From ARV that may be worth considering IMO the Flooded homes are going to be in the market for a while - based on the fact many owners are just hanging on and not paying mortgages .

Always perform a "wet funds" closing.

I'm looking at SFH or perhaps a duplex to get my feet wet.  

Pittsburgh has unusually wet weather due to its location.

Buying from wholesalers is not for someone just getting their feet wet .

I am not certain but most SBA loans I have seen have personal guarantees so you may want to save your banker some time and discuss this before going through the whole process.I like your thinking on the property but I don't think this is a good deal to get your feet wet with, the learning curve here is quite high.