First Rental - How to set rent, Property Insurance

[Hilary Hageman]

My husband and I just purchased our first investment property: a 3 Bed, 1 Bath, 1075 sq. ft. single family home in Niles, Michigan.  The asking price was $55K, we bought it "cash" (Home equity loan financed, $1,000 down) for $48K.  We expect to have to replace the furnace, stove, and a cracked window but otherwise the property is turnkey.

Who do you recommend for property/house insurance?  We currently use Liberty Mutual for our own home but I feel we're paying too much ($1100/year.)

Property taxes on this home are $1200/year at 0% homestead.  With these costs figured:

100 (insurance) + 100 (prop. tax) + $500 (Home equity loan payment) + $50 repairs reserve = $750 (!)

I likely can only charge $825-850 max for this property given my area.  That leaves a smaller cash flow than I was anticipating.  Is this an appropriate cash flow margin?  How can I reduce that stupid property insurance cost?