Insurance worth it on a mobile home?

[Eric Mcginn]

I bought a pre HUD mobile home on an acre last year and rent it to my handyman. The financing was secured by another property but now I'm trying to pull equity out of the mobile home property to free up equity in my duplex for future deals.

I found a DSCR lender that will probably lend 50% LTV on it so I'm going to try to move forward with that.

But in doing so I found my insurance for the property lapsed!! Apparently it didn’t go on auto renew like the other policies and paperless means I never got a dang notice of cancellation. They won’t reinstate it due to the lapse. So I found a new insurer and got a quote. And in doing so I realized that it’s going to be $2k more per year to insure it for replacement value of $145k vs before it was mostly just liability insurance plus a cap of $15k replacement payout. 

I think it should appraise for around $190k which means I could finance ~$80k @50% LTV.

I don’t have an immediate need for the equity transfer but it seems like the right thing because mobiles are so hard to leverage and I don’t want this new property using up all my equity indefinitely. 

But this added $2k/year expense has thrown a wrench into my equation. Plus the apprasal and origination fees etc it’s starting to feel like an expensive $80k mortgage. 

It’s currently 30 year amortization @8% 

So eventually I should refi I guess but I’m just stuck as to when. 
Do I just leave it as is (of course making sure I’m covered for liability) or do I fully insure and continue applying for the loan? Or do I wait 6 months for rates?  

Thanks for any insight!!!