Previous owner claimed 150k from insurance policy which is insured for 650k.

But I am having issue finding a title insurance company that is willing work with me.

In addition to the points others have made, I  buy with cash and self manage because:You obviously don't pay interest and origination fees, but you also aren't forced to buy property insurance, flood insurance, insurance, insurance.... you get my pointYou don't have to let a bank get all up in your business model, sign on endless fine print, and agree to pay them for decadesno one dictates what you need do or not do (possible exception - the IRS).A sole proprietor with an all cash position and self management.

I am sure if it is 90% LTV that their mortgage insurance to cover the gap.

Don't forget to get insurance on the property asap.

If you put 25% down your paymebt would be $850 to $900 p&I, taxes and insurance would run about $300 per month, I doubt he pays for any utilities except you'll have mowing and maintenane plus a potential 8% vacancy rate.

Now you also have title chain, insurance and DOS risk on top of business risk.

Apart from the mortgage, I would need to pay the homeowners insurance ($2,000) and homeowner's association fee ($500). 

Our two go-to lenders have just changed their policy and now require appraisals, so just wondering if anyone knows of lenders who would accept an externally based BPO.

My insurance went up about 3 times when I switched from standard property insurance to a STR policy ($1,200 a year to $3,400 a year).