Thoughts on flooded houses?

[Allen Lopez]

So there’s a an opportunity to buy and rent out a house in a low middle class area. The rent there goes around $1000/month. The house is being sold as a fixer upper for $41k. It looks like to fix it, it would required approximately $20-25k. Market value for properties around that area is around $125k+- 5k. It was flooded last year. I don’t know if this would be a good investment to rent (tenants plus flood) or a good property to fix up. Additionally, I don’t have any experience with fixer uppers, but I do have a very good handy man that can do it all. With flooded homes do I need permits, inspections, etc or would just replacing the damaged dry wall, and flooring (fixing the damages) work? Do the numbers look good to you guys? What would you guys look for when dealing with a flood property?