The difference being that the buyer's policy does not cover total replacement if the house burns down and it essentially just covers your investment in the house. 

If a claim were to happen while the property is vacant and being renovated/repaired, the insurance company would not cover it if it's insured on a landlord policy.You need to purchase a vacant property policy. 

For success, any expenses that will be covered out of your pocket, must be re-couped from the tenant's rent over the year. 

Personally, I find spending $300 on some decent landscaping in the front of the house, and taking some good pictures do more for finding tenant than lowering prices. if you're willing to lower rent by $50, then why not just spend the $300 on prettying up the place and get the depreciation that equates to the lowered rent. ($50 x 6 months = $300)just my $.02 

It is a great example, but if you cover your costs, you are killing it, taking home extra cash would be a windfall.  

I am picturing an onion and as you get further from the city center the "layers of onion" become less and less rent. 

How is it an investment property if your rents do not cover expenses?

@Jonathan Partsch, have your contractor to take measurements of the kitchen and take pictures if you want a visual of the space to help you understand it better.

I am wanting to know if I could make the sides out of wood and cover them with hardie backed board (concrete board typically used to attach tile on) to protect wood frame from getting to hot and catching fire.

Often times the rent will cover or exceed your mortgage costs.