I think this is a very effective strategy if you can grab a property low enough.

The Biggert-Waters Flood Insurance Reform Act of 2012 goes into effect Jan, 2014.

@Dion DePaoliI stand corrected.Though I would probably designate that as a "complex" - though not offshore - structure which may not be cost-effective in this scenario ... but I could just as likely be incorrect here.

Effectively the landlord is subsidizing your living choices.

The option money usually is counted toward the purchase price if the option buyer does choose to "exercise" the option and buy the house.A key difference is that a land contract (aka contract for deed) buyer has an actual equitable interest in the house.

Are there any NEW cost efficient and effective means of finding motivated sellers?

That being said, I think there are a few areas where this concept would be effective.

Before closing I would have the seller write a letter to the insurance company telling them to change the name of the insured to the trustee of the trust effective on the day you plan to close. 

Selling the stock, would take 25% of our stock portfolio.17% of our net worth would be tied up in the condoIf property sat empty for a couple years.. hmm, I would not be a happy camper because I would be eating carrying costs, but it would not effect my day to day life.The real estate market in this area is slowly coming back.

Keep in mind that assessors normally only value real estate on one effective date each year and have to carry out other program objectives in addition to the collection of sales data.