Without meaning to sound harsh, you really must research this stuff *before* you find yourself in the situation.First thing you need to do is research (via Google) your county and state rental laws.

I forgot to mention they gave me an application to fill out and have done first thing that morning .

Otherwise, this is not a covered loss if the house is NOT in a  flood plane (meaning you were not required to carry flood insurance with the mortgage). 

The listing agent did not even respond to my offer and presumably "lost" it among the pile of dozens of offers she received.There are lots of unscrupulous agents out there who will pressure the buyer to accept a lower offer if it means more commission for them. 

By the same token, If the hunting season is short and the winter is long in the Yampa Valley does that mean that a property you put into Cabellas Preferred hunting lease program isn't being held for investment when the Elk are in Utah and snow is on the ground - nope, that's still being held for productive use awaiting the next season.It's the same as any agricultural land. 

Discuss ideas with your finances Dad and grandpa by all means, but assuming they’re older and sounds like they have a lot of cash from a business sale, super specific advice from them likely won’t apply to you.That’s like asking someone who starting buying rentals in SF in 2008 what you should do for buying rentals in Rockford IL in 2018.

A mortgage at this size means the bank will lose a considerable amount of money even at 10% interest.  

Meaning, very simply,  a person with a 50k W-2 job or 50k rental income are taxed at the same bracket. 

By they I mean the property management company (who I don’t intend to retain) would transfer the money to me.Is this normal?

I also don't want all of the mechanicals to be old because on single family homes capex can destroy years of cash flow since the margins are tighter.