The last Liability only policy we did was 7 Single family rentals in FL, $1M of coverage for $1,700 per year. 

I won’t pretend to be an expert by any means as I have only been at this for 4 years and have 5 properties, but I thought it could be helpful to share actual numbers and different ways to look at them.

Fully booked throughout the last year.

I've been in the industry for over twenty years (and time sure flies) ...

That's correct and having access to the mls 

How have you been making payments so far, to a servicer or directly to the seller? 

And the ONLY people being foreclosed on have to have purchased very recently and have zero equity.

You are going to need to see their tax returns to see if they are telling the truth.And what is the interest rate that they are offering you?

The mortgage insurance on FHA loans cannot be removed for at least 11 years without refinancing.

My recommendation would be to choose potential markets - in several price points - that have strong rental demand and year-over-year rent increases and that also are in markets that are appreciating.