@Christopher Eduardo It's hard to answer the question without knowing a lot of details on their chapter 13 plan and how much they are getting from the sale of the house.

Establish a relationship with a realtor in the area, they will probably be able to get more details for you either through MLS or their connections.

I'll need help to creat my R/S account to start investimg.

If you have a good CPA, realistically, the only additional deductions you get for putting a property in an LLC are the costs associated with creating and maintaining the LLC. 

We plan to convert the sale proceeds into multiple properties to create passive income. 

I recently bought a property that was in a 'flood zone' and required Flood Insurance because of a loan.It made me think twice for a day or so, but after research (driving around/looking at aerial maps/talking to neighbors, I came to realize that there was almost zero 'real' risk.As you so astutely pointed out....this creates opportunity for investors that can do the research and can stomach a little perceived risk....

I have a great spreadsheet that I created and use to analyze deals I'd be happy to share. 

I inherited three single-family homes and have been educating myself on the various details of real estate investing and will be active here on Bigger Pockets (as well as reading the book...) so once again hello and nice to be here. 

Creating a LLC with a Wyoming Holding Company To Sell My Xbox on Craiglist!

I have always heard it is beneficial to create an LLC to help separate personal assets from business assets.