As long as you have enough savings to be protected in case you just break even or lose a manageable amount of capital, you're good. 

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.

We always  try to run through an escrow or 3rd party company to protect everyone.  

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.  

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.

We were contacted by a couple mortgage brokers who were interested in buying leads from people interested in loans... so perhaps offering financial services on the site could also be a way to go.