Which insurance to use to cover a home that’s being fix & flipped?

I have a plan and I'm not sure if I'm going to the right direction.

The Plan is to come up with $400k for the down payment and for that I'll need to sell about 3 of my rentals. 2 of them are single family with a ton of upside, so I don't foresee any issues selling them.

I plan to have $60k in liquid assets to be able to invest.

Right now, my plan is to have my wife do more of the business while I take on a full-time job and do the business part-time.

Here’s a detailed breakdown of these two types of markets and the factors that contribute to each:Cash Flow Market, a cash flow market is one where rental income exceeds the expenses of owning the property (mortgage, taxes, insurance, maintenance, and property management), resulting in positive monthly cash flow for the investor.Key Characteristics:High Rental Yields: Properties typically have high rental yields compared to their purchase prices.Stable or Slow Appreciation: Property values increase slowly over time, if at all.Lower Property Prices: Generally, property prices are lower, making it easier to achieve positive cash flow.Higher Rental Demand: Strong demand for rentals due to economic factors, demographics, or local employment conditions.Factors Contributing to Cash Flow Markets:Economic Stability: Stable job markets and steady local economies that support rental demand.Rental Market: High percentage of renters compared to homeowners.Affordability: Affordable property prices relative to rental income.Local Policies: Landlord-friendly laws and regulations.Appreciation Market, an appreciation market is one where property values increase significantly over time, offering substantial capital gains upon sale, but rental yields may be lower, resulting in lower monthly cash flow.Key Characteristics:High Property Value Growth: Significant annual increases in property values.Lower Rental Yields: Rental income may not cover the monthly expenses, leading to lower or even negative cash flow.Higher Property Prices: Generally higher property prices, which can make it harder to achieve positive cash flow.Strong Economic Growth: Rapid economic growth, population influx, and development.Factors Contributing to Appreciation Markets:Economic Boom: Strong local economy with job growth and high-paying industries.Population Growth: Influx of people moving to the area, increasing demand for housing.Infrastructure Development: Significant investments in infrastructure, amenities, and services.Desirability: High quality of life, good schools, and attractive neighborhoods.I hope this information finds you well. 

He is in the insurance business. 

Networking with local investors can provide practical advice and potential partnerships.Research and Planning: Start by researching the Asheville market thoroughly.

A 1031 exchange would seem to make a lot of sense, but you need to have a firm plan in place to execute on this when you sell. 

If you're living there and you plan on living there for a little bit but I don't see what the harm is in it especially if you want it.