The cost associated with insurance for not having 20% is peanuts compared to what you potentially can do leveraging your down payment. 

How much will this unit cost to renovate?  

He owns an asset that is worth (low-end) $300k that generates 2300/month (after all costs).

The bank will make you leave 25% equity in the property - but you also still want the property to at least cash flow some - so be careful how much equity you pull out / new debt you take on.I would do a cost benefit analysis of what your actual gain is in cash-flow on buying a new property with a (currently) higher interest rate (if financing), versus just holding on to the current appreciated property and enjoying that cash flow.All the best!

Your estimate seems low, but even at that cost, it will not add that value.  

STAY away from them at all cost.

One issue that I'm noticing is the range of reported insurance costs.

Invest in Fix-and-Flip Properties:Use the $50K as a down payment or cover acquisition costs for a non-recourse loan (required for SDIRAs).

@Loren Souers I'd have to run the specific scenarios with the rates and fees, but if you're OK with paying the higher closing costs, the Mortgage 1 deal looks good, particularly if you focus on CoC returns.

Additionally, working in a small-town market taught us how to effectively price properties for faster sales without compromising profit.