Hey Ben It's definitely a great, lower risk way to get into RE investing.

Several of my recent buyers have been medical and legal professionals with high taxable income, that are looking to expand their value portfolios by incorporating an accessible short term rental property (often doubled as a legacy anchor) that will often offset or 'pay for itself,' in tax savings. 

For the record, I own two homes (I paid cash for the both).Of course there are several financial factors that are involved when making a decision like this.

For your fixer needing conditional coverage post-close:Specialty Insurers: High-risk flexibility.Surplus Line Insurers: Non-standard risks.FAIR Plans: State-mandated option(last resort)

I can walk you through several projects currently in progress at different stages and answer questions, etc. 

If so, is it seen as a risk due to localized natural causes?

It’s a huge risk, especially if it goes non performing so why should we take on additional risk?

Good Luck---I'd like to know the PM if you don't mind sharing privately as I run several investor groups intended for WI investors. 

Jacob,Depending on how quickly you will start the fix up, you should be able to insure the Property with a Renovation Builders Risk.  

My goal is start an LLC in NJ, since this where we will make our first purchase and get approved for a line of credit from several banks in order to invest in a rehab.