I am trying to diligently save to buy properties locally but am getting interested in flipping to supplement my W2 income for a faster entrance into purchasing properties. 

@Mason FiasconeMason: I agree with the masses - the success of your investment will be predicated on the quality of your property manager and the amount of leverage you put on the property.If multifamily/commercial, run a model to make sure debt service coverage can handle stressed performance, and maintain a reserve.

@Wayne Brooks  without knowing details who knows whats happening.. but usually you have affirmative coverage or you have an act that your accused of that is not covered.. that as you state could be the case here.. 

@Samuel Carmichael besides what @Brandon Ingegneri said about looking at absolute dollar amounts to figure out if it's even worth the aggravation, I also agree with @Michinori Kaneko about looking at percentages.Personally I look at percentages first, namely 1) cash on cash return (yearly money back after all expenses including mortgage, divided by all money invested to get it rentable) and 2) debt service coverage ratio (net income after operating expenses but before mortgage payment, divided by the mortgage payment).The first is (obviously) a measure of return, while the second is more of a measure of risk as it tells you how much of a buffer you have between the property's net income and the monthly fixed mortgage payment.After you get a little more experience you'll also start to factor things like replacement reserves into account.

When has this happened to you and what carriers ("many"...) denied coverage?

Best way to improve on losses is to supplement your income by house-hacking. 

We have been investing in that area for the last 7 years and I have talked to a lot of UNT student that live even in the Corinth, Lake Dallas, Cross Roads, Little Elm area.UNT housing authority (can't reca the dept name at the moment) is actually on record as renting out local private housing to supplement its dorms...the net effect of that could be considered close to rent control...a situation that we originally considered but backed off after looking at the economic growth around the campus and true demographic we wanted to target.

That before you form the LLC in the area you plan to invest in, you need to ensure that LLC for the specific stare has external asset coverage.

Insurance companies all seem to have different names for the same coverage terms so it's hard to know what you have.

I do require all tenants to carry liability insurance coverage, minimum 1M,  and insist they show me proof annually of their policy renewal.