Especially for our roofing business we have looked at expanding to Lexington. 

I cannot see how build two, say, 1200 sq ft houses with two roofs, two foundations, presumable about 25-30% more windows and siding is going to be cheaper a duplex that might have a little extra fireblocking and soundproofing.Now, maybe your GC is thinking that detached homes tend to get higher rent than comparably sized and finished duplexes.  

Insurance is through the roof over the past couple of years.

a lot of new investors, though, hit a big capex expense in year 1 or 2 or 3 - roof, HVAC, an expensive tenant turnover - and are just blown away that all their "cash flow" is gone.hope this gives you some things to think about - happy to answer any other questions you have.

Texas- Houston.I had a roof claim which got denied 2 years back for no solid reason.

This along with your roof should be one of the 1st items explored. 

On my end, I've never asked for one even when there was quite a bit, as I buy investment properties and expect I may have to replace roofs, drywall and other things that might be moldy or contributing to it. 

The foundational items, roofing, HVAC, plumbing and electrical were newer and needed very minimal replacing and updating.

The roof is from 2008, and I assume the bank is carrying insurance on the property.

https://www.zillow.com/homedetails/114-S-Broadway-St-Toledo-... seller has 'described' it as follows:"The property features a new roof and updated electrical work completed two years ago at a cost of $120,000.