No sane buyer would turn your offer down, assuming reasonable terms. 

No reason to have more than a stove and refrigerator in the unit . 

And if this was the only time. 2) Ask for an Elevation Certificate  (link here if you don't know what it is)  3) try to get a DECLARATION page (same link if you don't know what it is) reason being a savvy agent can port over the rate if the seller is getting a killer rate due to government subsidies. 4) you can either shop the NFIP and private flood market to make sure you are getting the best price and best coverage. 5) make sure you are working with an agent that understands flood insurance (ask how many flood policies they have under 700 - Not an expert) 6) Google search "Lloyds of London flood insurance" know there is more than one option and you can hire a firm to shop them all or do it yourself. 7) Google search "Private flood Insurance" Know there are a great number of alternative to the government program (NFIP) and they are not all equal so again working with a flood expert could make this option a much easier option. 8) ask your loan officer or realtor if they know of anyone that really understand flood insurance and an expert agent that can make sure that the loan closing isn't delayed due to incompetence in this field. 9) let me know if I can help.

The reason I ask is in part for you as an investor and you as an individual, however these questions are rhetorical.

There's a reason it's hard to get funding for this type of investment - the risk is huge.I know that's no answer to your actual question, but I definitely question your desire to do this.Good luck to you and please let us know how this turns out!

There are numerous reasons why this should be the only option, outside of the friends/family discount.

Personally, Since I started out as a loan officer and I've seen all kinds of reasons that sales don't close, it doesn't surprise me when it doesn't close and I just move on to the next transaction.

Little background about me -I currently work in banking as a "Performance Coach" training bankers and managers on sales, customer experience and career development etc in CO and AZ.

But now I'm hungry for a repeat -- I want to acquire a reasonable rental or duplex/triplex, make it nice, and rent it to a decent tenant.

The lender is not damaged and presumably the owner was there long enough to satisfy the time requirement.Any *misrepresentation* on a bank loan, like intent, (reason for the loan), income, addresses lived at, rental history, amount of money in the bank, assets, liabilities, employment, time on the job, number of dependents, source of funds (the common things people lie about on applications that get them into trouble) etc, etc are potentially mortgage & wire fraud.