The throw off about $200k year in cashflow and I pay almost zero taxes.

their max quote period is 30 days so seems the quote was from Jan 13.It is not cheap, but the risk it high. 

This needs to be copied and pasted every time someone in an expensive market asks questions about out of state investing in cheap, stagnant markets.

dirt cheap!  

Agents don't always know what they're doing or they throw things against the wall and see what sticks.Even if you could purchase that, you'd likely face massive coinsurance penalties in the event of a claim since the property would only be insured to 57% of the actual replacement cost.If you've already shopped the policy across multiple companies and brokers, it's likely that the prices you're seeing are the prices you can get. 

Hard to find good ones that are cheapThere is 3 options, Good, Fast, Cheap; a person can choose any 2- If it's Fast & Cheap it won't be Good- If it's Good & Cheap it won't be Fast- If it's Good & Fast it won't be Cheap

Just taxes will be 20k.I would run numbers like this:Property 1.5 million (minimum)Construction (Cheap end) 2.14 mHolding Costs (at least 150k)In my book, even according to your calculation, that means you put in at least (those numbers are on the low end): 3.8m! 

If you can get it dirt cheap somehow and maybe flip it, then you could profit. 

Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and there's amazing appreciation potential.

There are cheap PMs, but I think you end up paying for that in the end.