Thirdly your reputation will proceed you, and eventually if you treat people with respect, and ethically, then I believe you will be "Blessed with the measure you use to bless others" Best of luck.

Despite its reputation, the majority of Houston does not flood.

For that reason alone, allowing a margin for error (safety) is prudent for sound investing.Some reputable investors follow or espouse that logic:http://www.investopedia.com/terms/m/marginofsafety.aspUndervalued does not equate to distressed (or cheap or low priced). 

Any recommendations for reputable contractors would be greatly appreciated.

One where we can create a win/win situation where both the Investor and Agent profit and our goals are aligned.Ideally it would be in the Real Estate Agents best interest for the investor to purchase a property at the lowest price possible because this would enable the investor to build up cash reserves more quickly and in turn purchase more properties which would lead to more business for the agent.It makes sense that a Real Estate Agents loyalty would lie with the seller because they may have a good reputation around the neighborhood for getting houses sold at a good price and they also earn a commission which increases the higher sale price goes. 

Are you working with a reputable insurance broker?

I am sure it would be ideal to buy locally as I can go inspect and such more easily but I'm open to investing out of state with reputable companies.

You have 2 real options, if you don't want to either end up with properties in a war zone or with properties that will never cash flow...do your homework or go with a reputable turnkey provider.

Would it make a difference if I was investing from a reputable turnkey company? 

If he's that interested in sharing his knowledge, why don't you encourage him to join and build a good reputation for himself...as opposed to you just mentioned him in every thread you reply to?