Then make the payments no matter what.Short sales are only possible with an owner who is behind on payments and can demonstrate financial hardship.  

That business will be able to guide some of the financial information, and will also be able to supply me with an abundance of referrals for contractors, electricians, etc.Current finances:110k income between my fiancé and I.

If you maintain solid financial statements, you will be able to sell that property in the future a lot higher because you technically increased its value (regardless of the market) because of the increase of its Net Operating Income.  

Even those who did not have flood insurance have the financial capability to get the repairs done.  

Is this something I should ask the seller about in relevance to the home's financial history? 

This is one in which the issuer (or a person acting on its behalf) has sufficient information to evaluate, and does, in fact, evaluate, a prospective offeree’s financial circumstances and sophistication, in determining his or her status as an accredited or sophisticated investor.

If I get a response on one of the properties, I will then assess the value and financial situation, see how much they owe and proceed accordingly with a short sale (if possible) or simply buy the house from them.  

Facts:$757k purchase price$752k total debt, $260k of which is past-due debt$925k ARV, only needs paint & carpetGross profit, before the costs of financing, is expected to be $90-$100k.  

I am very lucky because I have zero debt and no bills other than phone and food since I decided to get rid of my car I have no expenses now.

So if you did move from the property later on the taxes would kick in and drastically reduce your cash flow and other financial measures.