The problem is they currently have a favorable position  (58% LTV), great debt service coverage (~2.1), and the amortization remaining is 12 years.  

It is a rental so should I go for cheaper rather than more comprehensive coverage?

I think what you have listed is a good comprehensive list of the traditional ways of financing a purchase like this.

- 25k medical- 35k fair rental value- 20k other structures- 2000 deductibleare these the right coverage items/values?

Thank you for the coherent and comprehensive breakdown

A good rule of thumb is $65 per year for every $10k of coverage for a catastrophic fire policy in the area.Initial Equity – As an out of state buyer I know that I have greater risk for something to go wrong (and a limited ability to successfully handle it) than somebody who is buying in their backyard.

Can any flippers and/or experienced investors recommend insurance companies that sell builders risk coverage and land lord policies?  

If you find a property with any of these issues you should contact your agent to make sure that you will be able to get affordable coverage.  

Insurance (you better have some sort of Umbrella coverage               -  $100?  

I have been researching all the components of a house, and have been coming up with comprehensive lists of things to look for when analyzing a house.