Or alternatively if the owner walks away, and the bank decides to sell the NP'ing note ... does the insurance coverage convey with the note since the bank presumably required to be listed as additionally insured on the flood insurance policy (if the property was in the flood zone and one was required)?

@Mark SpritzWhile a Solo 401k may or may not be a better structure for you based on your situation, the additional benefits (beyond contribution limits and loans) include the following:-No custodial requirement-No need for LLC cost and admin to have checkbook control-Built in Roth-Spousal participation-UDFI exemptionsThe cost comparison depends on what providers you are looking at for each.

How do I go about performing a market analysis out of state?

That is in addition to your rehab budget.

I used a property manager, but they did not perform well so I became a full time landlord from 2200 miles away!

Our contractor earns 15% plus an additional 5% bonus if the property sells for 40% or more of the amount invested.

In addition, depending on where you buy the schools could be pretty well rated.  

Additionally, If this ends up in court, I would not want to try to explain to the judge (or anyone else) why I kept 6-months prepaid rent from a victim of domestic violence.  

@Katie Haney I agree with @Brian Ploszay on the point that there will be some additional costs associated with the property at that price point in terms of repairs.

I would advise that you get some additional info:- what type of damage (wind, flood, fire, etc.)- what coverage do they have      is there coverage for flood?