Wouldn't you like to be compensated accordingly.If you are nickle and diming over a builders risk policy maybe you should reconsider whether it is worth it to you to be an investor.You are looking to pocket thousands and you are having a problem with paying a few hundred to protect your assest.That picture is a little cloudy.Not meant to offend, but to understand.

If it's a 1/1 I would seriously reconsider it.

As @Brian Adams and @Jason Parnell were saying about the price point to stay at, I should probably reconsider just staying in Austin as you said.

@Ben Visser Great analysis of this deal; however, you might seriously reconsider this deal as you are still going to be negative cash flow if and when you move out in the future. 

If they are great tenants and you want to retain them, you may want to reconsider pushing for building and deposit.  

You want to reconsider using a PM.

Since I live here, I still think investing here can make sense, but if I lived at a distance AND self-managed I might reconsider, as you are doing. 

You'll also be more savvy and know what kind of hassles certain situations are to deal with and reconsider what your time is worth to take those problems on.My point is to pat yourself in the back for what you've done right and encourage you to re-examine those actions that you would take and resources that you might employ sooner or differently. 

If a seller objects to my offer, I explain (through my agent) some of the basis for that offer, and if they want to demonstrate that some of my assumptions are wrong by turning on the power or the heat, I'd be more than happy to reconsider the offer. 

If not, you might want to reconsider this.