Many of the newer homes are built up to a higher elevation, meaning the builder brought in more dirt fill on which they built the home in order to raise the elevation and mitigate flood risk.

I'd reach out to your insurance agent and see about getting a new wind mitigation done on your property. 

After the purchase of this property, we have more than a year's reserves which helps mitigate risk and we can cover the monthly mortgage with our current income.Is it a wiser decision to keep the cash ($110k) in a 5% yield account and wait for market adjustment or make this purchase?

A good way I do this is talk about my deals and the framework I use for this is inform and educate.I wrote a separate article on that framework here:https://www.biggerpockets.com/forums/62/topics/1141846-how-d...When networking with private money lenders with the intention of raising capital its important to:Set clear investment expectations upfront regarding typical returns, timelines, risks, and how you mitigated them.

In scenarios like this (and @Ryan Dossey's mentioned above), how do you mitigate getting duped?

This will help to mitigate legal risks and lawsuits, which can potentially destroy your investments.

If you can buy with low leverage (debt) and don’t mind holding it as a rental if you can’t sell for a profit then you can mitigate your risk and be ok.

community banks want to lend to those in the community but will rarely lend to those with no experience.. you can mitigate experience with a big cash position or strong balance sheet. fico score is not a huge driver for them you need a decent one dont go in there with a 620 and expect to do business. 

After the purchase of this property, we have more than a year's reserves which helps mitigate risk and we can cover the monthly mortgage with our current income.Is it a wiser decision to keep the cash ($110k) in a 5% yield account and wait for market adjustment or make this purchase?

BRRRRs are also hard to pull off - you have to have some sort of unfair advantage to mitigate risk.