Get a quote from a broker who works with American Modern, talk with them about whether you need full replacement or market value coverage (pros/cons either way).What's w/ HOA on a property like this?

The quote showed for an additional 45 cents per month, I can get $1M in liability coverage.

Some will simply ask the buyer to purchase and additional $10k coverage but some, like the one we were working with insisted on a double closing.Long story, shorter version: We now have a double closing in the works, us buying the property from our seller at $160k, then same day simultaneously selling to our end buyer for $180k. 

I find it hard to believe that the rich/big corporations would open numerous accounts for coverage.

And it will have much less coverage.  

never dealt with HOA, but in general you are not required to rebuilt. if you just insure for 60, you will get the mortgage paid and walk away. do that. much cheaper per month. i saved lots of cash reducing the coverage..

Some of these have a debt coverage ratio of 4%.

But if you take that tact make sure it  is a good investment  for them In terms of of cash on cash return and debt coverage, percent rules etc. 

@Rob SchockerThe local Landlord association meetings are a good place to meet like minded and possible deals.When evaluating a deal we use CAP 8%+, Debt coverage ratio 1.6%+ and cash on cash return 12%+.

Go to this link if you would like a more comprehensive explanation of the "Due on Sale Clause"... http://www.creonline.com/beat-the-due-on-sale-clause.html .In my lending career, I have dealt with countless homes that are deeded to to a trust or other entity, and other than having to deed the property out of the trust's or entity's name back to yours' (and then, back into the entity's after the transaction) in a transactional situation, the bank does not seem to care.