A $200k SFR LL hazard policy in my area is only about $700/yr.  

What you need is a homeowners policy but you need to notify them that this will be a rental. 

@Mike Alder  good luck I grew up in the business.. must watch movie for any land man is Glenn Garry Glen ross... you will see how all these lots you want to buy were created in the first place.land game dates back to just after the turn of the century  ( not 2000) when promoters went through the US creating mega subdivisions prior to any state or federal land development rules.. so you have all these old tracks and the parcels have been traded for 100 plus years.. lost at tax sale bought by someone like you or my dad.. resold on terms  those folks default or lose to tax's and the cycle repeats.Florida created massive subdivisions to attract residence's since no one wanted to live in swamps and such.. think Le High and Coral Gables..  

Do you have to be a real estate agent for a number of years or sales prior to becoming a broker?

The property was in the deceased woman's family prior to the marriage.

Also, you must stay at that residence for a minimum of 1 year I think before moving out.I you apply for a conventional loan and do not intend to live in the house, you must apply for a second/investment home instead of a primary residence.Since your duplex is fully occupied I'm not sure if the bank will require at least one vacant unit prior to closing, but they will at a minimum want you to LEGALLY sign that you intend to move in within 60 days.

I sent him the application prior to showing the property and he had everything filled out and application fee ready almost like he didn't need to see the property to apply.  

Along with the HUD-1 being replaced with a different form, it has some requirements that Final closing statements be issued 3-5 days prior to closing, along with some minor other changes.  

So there would be no prior property tax liens. 

Were the changes made before you prior to your knowledge?