If you know how to use them properly, you can use them to your advantage to lower premium while still avoiding big out of pocket expenses in the event of a claim.

Advertising:  I've used the non-premium service and the traction is low. 

@Sarah Ferullo, for reference, you will pay utilities during vacant  months, so not enough to change the overall dynamic of this deal, but there will be occasionally utility costs.Your line itemed expenses/reserves don't include any insurance premium.  

What sort of policy are you compsring them with to make you think the premium is unreasonable?

If it's day one then it will add a premium for being open to investors, unless the concentration of investors is too high and the building isn't warrantable... then that would hurt you. $900 month from 500K equity doesn't sound great.

A new build will garner a premium vs a resale and you can really build the house to fit what the market demands today.Run the numbers and time on both and see where you stand and what makes more sense.

Only a very small fraction of available homes are truly waterfront, and they command a premium. 

Gastonia is starting to get quite pricey and while I don't think I would be buying in at the top of the market, I would certainly be buying in at a premium.

@Jackson LongA Pro or Premium account is required to be able to change your forum signature settings.

He pays cash, fixes them up and charges a premium rent.