Steve I would suggest NOT including prepaid taxes/insurance in your math.

Bruce, Especially because you do not have an existing relationship with anybody, I must suggest that when doing your research make sure to ask for references from folks that have actually filed a claim with the carrier that you are interested in.  

Any suggestions as to the popular tourist areas that would make a good investment?

I suggest you PM Jeff with your email and he can alert you to the next meet up.

If your loans are with a small, local bank I'd suggest talking directly to them.I think an LLC or DBA makes sense from a professional point of view.

Let's assume I only have access to bank lending (please don't give suggestions saying I should find people willing to invest, I'd like to stick to a bank for now). 

I would suggest calling the county with the question.

I suggest you renovate and resell.

If you are looking to purchase a new flip or rental I suggest staying away from the MLS while the money is out.

I suggest calculating your numbers assuming that you will rent out both sides at market rent.