However, this is pretty much doing a BRRRR now which I've never done, don't have the time and is capital intensive (plus, I'm out of town) which doesn't seem too appealing.While I could just weather out the cashflow and bank on the appreciation over time, I feel my return on equity is poor, and that equity can be put elsewhere to be more productive.

Mary,I am not aware of a normal insurance product that would cover more than Replacement cost for most structures.  

If the lender you talked to only has this option, you should shop around for lenders that have other loan products-80% cash-out refinance is going to be challenging in any circumstances, but especially with a short seasoning period. 

That is your message, your business, your modiel, your product , your service.

The second property would need to be under a loan product other than a primary conventional.Appreciate it!

Some lenders will waive escrow accounts- some for free depending on the loan product and down payment and some with a .25 add to the current rate. 

How specific can you get in your lease when it comes to tenants responsibility for repairs of things to the house related to negligence, ie flushing sanitary products down toilets, appliances, hoa fines related to negligence of caring for the yard or following hoa rules etc? 

Super convenient mortgage product 

Yep, its known as a Fix & Flip loan and you can find it on the Lender Finder feature here on BiggerPockets.The term of the loan will generally be less than 2 years and they will usually fund a percentage of the purchase price (I've seen 60-80 percent) and many times 100% of the renovation.It makes sense to have a strong idea of the reno costs prior to applying for any amount with this type of product. 

Just as a reminder in addition to the interest rate, amortization schedule and fixed period of the loan, inquire about: 1) Prepayment Penalties (In case you want to refinance in a few years), 2) Possibility of Rehab Funding, 3) Reserve Requirements, 4) Personal Guarantees, 4) Rate Adjustments (i.e. at the 5 year mark) to understand other variables in the loan product that works best for your project.