Insurance companies are taking a close look at building materials, quality, and updates. 

Quote from @Account Closed: I would say.. can you save the tub and re-glaze and redo the tile on the wall can save you $1,000 or more just on materials and labor..

Due to inflation and the drastic increases in material, labor, and supplies, that's naturally caused carriers to rethink limits/values on file. 

Had quotes for $20,000 not including materials. 

I'm debating sponsoring other areas to hang my material up.What ways do you like to promote your business?

And the reason why your "tale of two halves" will play out as you described.Demand:  This has actually been high almost all along, but rent growth hasn't materialized in response due to high levels of new supply. 

The floor of a deal killer has no bounds, you could be wrecked for eternity if it's a material deal.

I would say it's more of a scam to offer a seller <70% on a property that needs $5k in material repairs  and flip it for 125% without stepping foot in the property.

@Kyle Atans  for me for the younger investors or starter investors is  at least use that 100 or 200 a month positive to paydown debt at an accelerated rate it will save them a ton in the long run and if they can get them paid off in 10 to 15 years that's a good thing.. its not like saving 1200 a year is going to materially affect their ability to buy unit number two and if its that tight not sure owning rentals is that great of investment anyway.

Mortar, paint & bonding materials deteriorate leaving cracks, gaps, etc. which can be concerning to look at, but this is very often addressed with repointing.