they insist they must insure the property for full replacement costs of around $400k I thought owner occupant insurance would be cheaper than landlord insurance?

You need to learn how to use all the tools available to you (financing, insurance, management, etc.)

I think this could be at least $800/month, but evaluating based on what it is.Taxes and Insurance $110/moUtilities $80 / momanagement fees $50/mo (8% management... not to mention leasing fees that I put into the vacancy number)repairs $140 / mo.

Closing costs for a refinance are always the same: origination charge if the bank has one, title, appraisal if one is required (usually paid out of pocket by borrower), any points for the rate if it's below par, pre-paids such as taxes and insurance for your escrow account.

Previous owner claimed 150k from insurance policy which is insured for 650k.

But I am having issue finding a title insurance company that is willing work with me.

In addition to the points others have made, I  buy with cash and self manage because:You obviously don't pay interest and origination fees, but you also aren't forced to buy property insurance, flood insurance, insurance, insurance.... you get my pointYou don't have to let a bank get all up in your business model, sign on endless fine print, and agree to pay them for decadesno one dictates what you need do or not do (possible exception - the IRS).A sole proprietor with an all cash position and self management.

I am sure if it is 90% LTV that their mortgage insurance to cover the gap.

Don't forget to get insurance on the property asap.

If you put 25% down your paymebt would be $850 to $900 p&I, taxes and insurance would run about $300 per month, I doubt he pays for any utilities except you'll have mowing and maintenane plus a potential 8% vacancy rate.