An umbrella insurance should do when you are getting started.

(Market Value 265k)10% down + closing costs (32k)Monthly P&I + insurance/property tax etc.1400/monthCurrent tenant will stay on after purchase.1315/month rent. 

My goal is to get 8-10% net cap rate for a long term (20-30 years), I'm still considering few strategies, To invest in a big and stable city like Jacksonville to buy a old house (1960-1980) in not so good neighborhood and give it to a property management company to take car of the properties or to go to a medium city like Gainesville but will still need a local property management or it will be better for me to invest in a new construction in a small city like Ocala (I know there is a lot of development in the area) and I can also manage it myself.

There will be insurance $13/mo and POS from city $17/mo.Let's say $500/mo make it $6K/year.

If you don't keep insurance on the property if its mortgaged, the bank will get insurance for you and you won't have a choice in the matter.

Lots of people fear the increased insurance premiums, expense and hassle.As to the costs, just talk with a local pool company.  

Private Mortgage Insurance is simply an insurance company insuring a portion of the mortgage.

I actually bought a 4 unit a mile away for $45,000 last year but that needed about 30K worth of work so I feel this is about right as this one is turn key with no repairs needed.The seller financing deal - Sales price $63,500Cash at close from me $50004 year note @ 4% for remainder ($58,500), monthly payment of $1000 with balloon at the end, no prepayment penalties.Monthly projectionsIncome =     $2200Expense=    $220 management                     $220 CAPEX = No problems yet but "Unknown age" on the roof and owner has had property for 20 years                     $480 Insurance/taxes = Total taxes for 2017 were $4982 on assessed value of $78000 plus $600 a year for insurance

The current lender is an insurance company, and I'm not sure how hard they are to deal with. 

You'll need to get title insurance.