I'm currently in negotiations for a property that is very close to a flood zone but I can not find evidence that it is in immediate danger.

Hey @Madison BalterYour tenant may be in danger of loosing her housing voucher, if she owes a past LL for rent.

This is usually a "cash" based system.A danger to be aware of is, just because you have cash in your account, doesn't mean you have cash to spend.Set up a rough budget of the money coming in, such as rents, and money that is obligated, such as mortgage payments.

Otherwise, they are looking at the cash flow as the limiting factor and are mitigating risk.

Thinking you'll be able to build your own team piece by piece from the jump is dangerous.

Plus doing a housing development in our economy is dangerous. 

Also doesn't mean you won't lose, as an attorney could convince a jury that the height of the fence was inadequate and you were aware of the dangerous issues it caused and failed to take any action to correct this dangerous situation.No one has asked what type of tenant this is and how badly you want to retain them as tenants.

I am a bit spooked by all this recession talk and curious if there are any ways I can mitigate risk (other than standard due diligence). 

The AVR on the property is significant, but so are the repairs needed from roof replacement to mold mitigation from what I can see, so I would need to get it at an "as is" or assessed value for it to make sense. 

Once we acquire the loan we try loss mitigation with the borrowers in order to get them on new payment plans through forbearance then loan modifications.