Your mortgage insurance is obviously a lot higher, but the interest rate is also extremely low if I'm remembering right.To qualify you have to move to an area declared to be "rural" by the USDA.

.$600 pr mo payment 1350$ rental income 2 months go to insurance and taxes. $7500 pr year income assuming nothing goes wrong and 0% vacancy factor.  13 years payback to make my 100k equity.  23 years left on the mortgage. 

Loan servicers will assist in compliance.Closing/Wrap: Despite the legions of title companies, they are merely insurance agents. 

I also think that you should expect about $100 a month in insurance.

But you’ve found NO motivation... so TODAY they might not be motivated, or next week or next month but your marketing and constant contact will insure you are who they turn to when motivation appears I’d suggest other avenues, try whatever is comfortable then also try whatever is uncomfortable.

You not only have a safety issue, but your insurance company may not insure you if something was too happen, you have a code enforcement issue, and you are exposing yourself to legal issues if someone gets injured up there.

This is not hyperbole.I get there is business overhead and insurance and travel time, etc. - but come on!

The challenges with subject to deals come up with the due on sale clause and the insurance.

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.)