its customary but not mandatory in WA for the seller to pay for the owners policy  as the seller is the one saying they have clean title you should buy my property.Lenders policy is paid for by the borrower and required by any lender I have ever heard of.When we are swapping around cheap mid west or south properties that have no debt its not uncommon to not buy title insurance if your familiar with the property.title insurance like has been said can be very tough to execute on when a claim comes up typical insurance companies sometimes you really have to fight ... but if you need it and your covered its very cheap insurance. 

I am not expecting a fight nor am I willing to get in one.

I volunteered to do the research to find out what other landlords in other communities have done to fight/object to these increasing fees. 

I just do not have the capabilities to actually purchase the home outright with that difference in value right now. 

No, I want to make an offer on a property where the owner isn't capable of managing it anymore. 

Is there a way I can fight this or is it worth going to another appraiser? 

Would another investor even entertain the notion of buying a SFR with bad tenants and just continuing the eviction fight?

Not something that many people would be fighting each other for.  

There will of course be mortgage insurance however you can get rid of this by paying through the rate in a one time payment call "single premium," so there will be no monthly mortgage insurance.So in this explanation it would be better to refinance the property into conventional prior to converting it to a rental to free up your FHA qualification capability by using a 95% conventional loan if its a single family residence that you'll be converting to a rental soon.

Then after realizing that I'm nowhere near capable of building a wordpress site on my own, I turned to freelancer.com (looking to post the project for about $150 or so for a simple 5 page website on an eye catching responsive theme[free from google] and shouldn't take but a week or so to complete).