The 4-plex and next one I plan to BRRRR are actually in the Dayton area

I won't get into the specifics of the actual deal itself, that has already been properly analyzed by both my partner and I.

The three touch rule, although a good idea, is not an actual rule or law.

My loan officer actually suggested it.

I'm actually retired and I live in Cedar Park.

(Shameless plug: my wife @Erin Spradlin actually just wrote a BP blog post about the need for STR insurance.)I am not an insurance agent -- insert obligatory disclaimer here -- but I can almost guarantee you that your normal homeowner's policy will not cover you, which makes sense.

I actually moved up to Tennessee from the Auburn area which has a Tuscaloosa as well but I can assume you mean the one near Birmingham haha.

FEMA actually needs to visibly verify the presence of the flooded appliances to give you credit for it. 

With a HELOC, you have no extra expense (some HELOC has annual fees, but they are low - like $100 - $200 at most which is negligible) unless you actually pull the cash out.  

Namely, the person who is being foreclosed on gave up ownership of the house several years ago via quitclaim to another person that does not appear to be a family member.I'm assuming this triggered the due on sale clause for the bank, even though that took years to actually occur.