It's not an excuse to do a bad deal and with no money down, it may not cash flow, but you'll learn a ton and have your housing paid for by your residents while you're going to school. 

@Glenn Primack I would assert that without knowing the coverage terms and carrier quality we can't know if the policy is a good deal or not; all we know is that it is a cheap price! 

I need to replace carpets, looking for recommendations on Carpet installation and quality to look for, and also for Luxury Vinyl Plank.

Not saying you can't do it, but the investors that get the deals in this area are experienced and have a ton of cash to deal w/ the rehab, or overbid and make bad deals. 

Is it bad on crime?

( bad sign ) So I did a walk through and the place is pretty bad!

Pricing in the area is still within a range we feel comfortable with, and we are willing to hire a quality property management company to manage properties for us.  

If they did... that is bad,All in all, you just need to find out if the feal is still a good one for you.Can the flooding issue be resolved before your close date?

I'd say that your chances of getting a bad tenant are greater than in say PVB, but you'll get a bad tenant in ANY neighborhood (A+ down to D-).  

No matter the timing of the cycle or the macros, modestly leveraged real estate has surpassed  returns of Real estate as a whole by about 10% since 1985.And the reason is not that leverage is bad.