If you finance the property you must purchase flood insurance, rarely or not doesn't matter if it's in the zone. 

You need to talk to your insurance agent about finding the right liability policy and umbrella policy.

If their program shows a lower valuation than what you've listed/applied for, they'll require an appraisal.Alternatively, you can ask them what value their program came up with and if you're OK using that number instead, proceed with it.

In a direct exchange the proceeds from your sale go directly  to the title company handling your purchase. 

I see now that even a mathematics whiz wouldn't be able to figure this out....it ultimately depends on what gets built or how we decide to invest proceeds. 

It will make your property more competitive and if your tenants do start a fire then the rental insurance should hopefully cover it.

Can I then get it insured?

Location: IndianapolisPurchase price: $125kClosing: $1,200Reno: $78kProjected Reno time: 3 monthsHolding costs: insurance $350 (3 months), taxes ($150), utilities ($500)All in costs on projected timeline: $205,200ARV: $260kIf I BRRRR:Rent: $1,500PM: $150New Assessed value for tax: $450/month (2%)Please help!

The proceeds from the first sale will go directly into the escrow account of the purchase.

They need to carry basic hazard insurance while the builder carries the liability.