Keeping $300k captive with a near-zero return seems ill-advised to me.  

I am not talking about independent agents or captive agents.

Here is a description of the types of insurance producers in California from the department of insurance website.The following are descriptions of the four basic distribution methods: Captive AgentA broker-agent acting as a captive agent represents a single insurer, or single fleet of insurers, and is obligated to submit business only to that company or, at the very minimum, give that company first refusal rights on a sale.Insurance BrokerA broker-agent acting in the capacity of an insurance broker is an independent insurance sales person who searches the marketplace in the interests of clients, not insurance companies, and may place coverage with any admitted insurance company.

If you're dealing with a captive agent such as a State Farm, Allstate etc...they may not be able to quote you for a standard liability policy, but if your agent is with a Independent brokerage firm they should have access to the type carrier you need to correct this or they should be able to issue endorsements on all the properties to add liability coverage.

The students are also a pretty captive renter pool.  

You should probably have your insurance with a broker vs a captive agent. 

Thats the real gravy train. with that said - I may be doing 2x arbitrage units in the future, but the future owner of the units has an interesting situation where he owns businesses below the units that will benefit greatly from a STR and semi captive audience. 

The biggest thing is learning the ropes of what it takes to create a captivating listing, and how to effectively use a dynamic pricing strategy.

Nonetheless, someone who has the staying power and a captive construction crew and/or does this as an owner-builder, will make out pretty well on a new build.  

Therefore, we have decided to pivot our attention towards the captivating realms of Ohio, with a particular emphasis on the Cleveland and Cincinnati.