Can I then get it insured?

Location: IndianapolisPurchase price: $125kClosing: $1,200Reno: $78kProjected Reno time: 3 monthsHolding costs: insurance $350 (3 months), taxes ($150), utilities ($500)All in costs on projected timeline: $205,200ARV: $260kIf I BRRRR:Rent: $1,500PM: $150New Assessed value for tax: $450/month (2%)Please help!

The proceeds from the first sale will go directly into the escrow account of the purchase.

They need to carry basic hazard insurance while the builder carries the liability.  

When school was over they then the home was rented a few more years and sold the proceeds used to pay down school loans.

Another option is to ask your insurance company what the replacement costs would be as they have all that data as well and use it for underwriting policies. 

We have just submitted an LOI, and hoping to proceed on the deal.

If I decide later to start a construction business (actively building and selling new spec houses), assuming this is taxed as ordinary income with social security, etc and treating the homes as inventory - if you build a house, then sell it, then spend that money building a second one, but don't sell it until the next year, then sell it, then build another, can you effectively push off the taxes as you are rolling the sale proceeds into new inventory costs / construction costs? 

Do I need to purchase title insurance? 

I am saying this with 100% respect, do not proceed until you educate yourself more on the process.