Not if you want an insurable title.

The hard part about where I am looking is the carrying costs (i.e. taxes & insurance). 

(see #1 for criteria)3 - 4Sale listings (see #1 for criteria)4 - DOM...this is different for all three above.5 - Taxes (for rentals...must be for rental house if they are different than owner), insurance, etc...6 - Desired profit (for Flip analysis), and cash flow (for Hold analysis)...and don't lower these. 

Maybe they said that because it is un-insurable? 

The QI world is unregulated and it’s important to make sure the company you choose is insured and bonded and has the experience and expertise to assist you.  

I've called my insurance company but wanted to confirm if the seller had any responsibility to disclose the flooding basement issues that could not have been discovered during the inspection.

Then there is errors and omissions insurance and that depends on your brokerage.  

Maybe even your title insurance from the purchase?

Expense are quite low: $2000 year taxes, $600 insurance, $700 street lights, $3000 vacancy/lost rent, $1000 upgrading UTL & gravel/pavement per year = $7,300/year expenses.

I’ve never run into an insurance company who’s inspection would turn up a specific panel.