Trying to get any input from people having done this, and also perspective from a lenders point of view.  4.  

But if it's an intelligent calculated risk, it's probably worth taking.

Renting the entire home to just one family would probably just make me break even or possibly lose money, which wouldn't be worth the investment of my money and time. 

There is no sense in payment more then you should be a property and it is worth an ask.

If you really want an attempt at this property just put in an blind offer at what you think it's worth (or even lower so you got some room to negotiate).

Really, anyone considering investing in flooded homes has to have an idea of what the future value will be and my question via a recent post; Is a flooded home forever worth less than a rival that did not have water in it?

I recently found someone who knows of a resort property where he can get it for significantly lower than it is worth,.

If the house is worth $125k at death, then that is your basis.

Its not worth it to make the property immaculate with the newest trends.

Conversely if values are high but rates are high you can appraise for the value you need but the rates will not be so appetizing.In your case where you have FHA monthly MI of .80%- .85% even if you could refinance to the same rate you have right now and remove monthly MI it would be worth it since you'd save around 400 dollars per month most likely.