Perhaps you have coverage for the replacement value BUT the insurance company when calculating the replacement property uses modern building materials like drywall but your original house had plaster which is much more expensive.

I guess from an "all things being equal" framework, what are the variety of reasons that an older home are more expensive to insure than newer homes? 

And to pile on, if you didn't own this property, then you would be paying $700 or more in rent each month to live somewhere else.It's nice when you can find a hack that allows you to live rent-free, but that doesn't happen often.

overbuilt. just google Austin and over delivered or overbuilt and you'll find your answer. strong market, expensive land, expensive to build. 

Is $107k your true net, or do you have any other expenses (mortgage, taxes, lodging taxes and fees, insurance, utilities, landscaping, WiFi, etc.)?

@Matthew Drouin had a great reply:"Typically 50% of revenue is going to go right to operating expenses on small multi family. 

I have heard good things about Ohio, Indiana, etc.5 - Due to high interest rates flipping has become highly risky and most businesses have dried up.6 - Co-living and Assisted living seems to be popular right now.So - really depends on your market, your strategy, and your timeline.

Many are choosing the most expensive they can afford on purpose.

If HOA by laws state past due owners are responsible for all late fees and legal expenses for collection hire an attorney to go after the past due. 

Also why are you deducting 50% for expenses?