The big thing about Memphis is that it’s stable.

For instance, depending on your location insurance costs could be much much higher than indicated in the book, construction costs are a lot higher, etc. 

what is damage protection insurance? 

I've only ever purchased homes as primaries, one being rented out currently to an insurance company and the other is my current primary.

DOS or more commonly known as Event of default.Alienation of title is an event of default in most all debt instruments not usually located in the Note its in the mortgage  deed of trust etc.And along with other Events of Default  IE non payment of Insurance or tax's or waste these all give the lender the right to Accelerate the note but not the obligation..

Your insurance company might want to look at the property. 

This is a recent decision where a title insurer denied coverage to an insured owner who had been named in a suit to rescind the deed into the insured. 

However, due to rising insurance and tax costs, I'm starting to feel the financial pinch as the tenant currently pays rent 60% below the market average.My long-term goal is to acquire more properties, and I've considered doing a cash-out refinance to access equity for reinvestment.

The DSCR program "Must use the lesser of the two either common rent from the appraiser 1007 rent schedule form on the appraisal or the lease".You also have to factor in the taxes and insurance because a guesstimate or ball park can kill the approval. 

Good insurance, particularly with an umbrella liability policy provides very adequate protection on smaller assets.