Finally, I would learn how to send out offers to owners properly so interested sellers can call you wanting to get deals done, Gabrielle.Happy to help further. 

Hello everyone, I am at a loss at guessing the proper about of insurance coverage for my properties.

You say you would like to be at a 12% CoC return at a minimum, for a small multifamily property in Austin proper.

You may also want to consider the rehab loans besides the 203k loan, its a great product but it can be a bit more complicated than other rehab options and in the hotter areas your offer with a 203k loan ay not look as attractive to a potential seller.

The fixer-upper duplex that I bought has presented many more challenges in learning how to properly fix up and maintain a building but the property is on track to perform very well (around 14% cash on cash).

What I can recommend is taking some floor plans and product from nearby neighborhoods or houses you like and backing out the estimate from that.  

And many fly by night investors came in to fix and flip without proper flood remediation. 

Looks like the proper first step to me.

Your tax advantages in such deals are:1) Pass through depreciation of the asset during the holding period.2) Pass through write off on mortgage interest during the holding period.A properly structured deal should make any income during the holding period essentially tax free.

I would never close without the proper inspections and disclosures though.