I wonder if this would reduce the price that the landlord could expect to receive for the property.

@Chris Ayers I don't know your state's fair housing laws, but here in MA, receiving any form of public assistance is a protected class.That means it's an area where you have to tread VERY carefully. 

You cannot receive the funds as a reimbursement or they will be taxable to you.Regarding offset losses, the IRS really doesn't care too much how much profit or loss you have on a property. 

Let them know how you came to that number and the other numbers you received from the seller.

My tenant's annual lease is up this month and they want to do a month to month since they are job hunting, and could get something at any time. 

I have not received any paperwork stating the lease has been renewed (though I suppose it could be out there).

I asked our property management company for copies of the annual inspection reports and the last annual inspection was on Jan 2015. 

I received a quote today for flood insurance on a 2100 sq. ft.

In this case it is usually up to the tenant to ensure you have it filled annually.

I have a lender who wants to lend me 100k to use in our flipping business but was wondering if there was any way to structure the deal so the interest that he receives is not taxed as ordinary income.