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

Hello Everone .

I just bought a duplix for 281K in pensacola 2 months ago , Is it the norm to pay around $3200 on a policy ?
Thank you 

if there is appreciation, but you wouldn’t sell your current home tax free and buy a neighboring home to rent out, (There by raising your cost basis for additional depreciation and lower capital gains tax.) then it probably doesn’t make a good rental property. . 

You can always consider doing a cost seg study on a property that you buy and that can also help with tax benefits if you cannot qualify for the real estate professional status.

Materials have increased more than 20% in the last 5-8 years.

The turn will typically cost at least one 1 month rent and then the freshening/repair costs.

You might want to partner up with a friend or family member to mitigate the costs.

Purchase price: $90,000 Cash invested: $55,000 Triplex in SE Cleveland (D+ neighborhood)Purchased for 90 and saw 105 for valuation. 25% down plus closing costs and unit repairs has led to about 50-60k going into the deal.

Quote from @Cameron Moore: Exactly. 15 years ago, I noticed an increase in owners using insurance to pay for a replacement roof, usually to sweeten the pot during a sale.

The only two ways to rectify this are (1) purchase the property far below market price or (2) significantly increase the property net income usually through some method of “repositioning”.