I have done some research and I could switch to high risk insurance but it would be expensive and diminish my cash flow.

If you hold for the long run, all the other concerns you have will diminish.

Not trying to diminish financing, but I'd put more focus on those other two pillars of deal flow and team; then start worrying bout financing. 

Before you let go of a performing asset and have cash that will be providing little to no return (and the buying power of it diminished by the current economic cycle), don't just get your ducks in a row. 

Maybe you're worried your cashflow may be diminished, then that is a different question.

It is a diminishment of services. 

Possibly a bit nuanced of an answer, but would a quarter rate increase cause you to lose sleep OR greatly diminish your ROI? 

If you have severely diminished inventory and this opportunity was given to you on a silver platter, perhaps it is a good deal.

An additional $10,000 also went into replacing the roof, which improved the efficiency of the utilities while further diminishing the cost.The renovations took over two months; however, that allowed for the restoration and improvement throughout the building and enabled me to approach one of the current tenants to offer some upgrades to their unit for an increased monthly rental.

On the other had, it the guy whose property is doing $50K decided to sell how, he/she would build in "price premium" for the fact their property is doing so much rent, which would actually diminish the cash flow potential for the next buyer.