I had this mindset, but have found that traveling medical professionals need furnished rooms and are able to pay a higher premium because of their stipend.

The first quote i got back was twice as much as the current owners current premiums 2.

It'd be a nice way to add NOI but would not achieve the rental premiums you're looking for. 

No higher premiums to cover it, no higher deductibles or different and more expensive policies just flat out will not insure the property.

The Austin housing market is one of the hottest in the country, and according to a report from online real estate brokerage Redfin, homes are selling for the highest premium out of 47 metro areas it analyzed in the past month.According to the report, homes are selling for 7% over asking price.

@Kyle Marsh at University of Florida in Gainesville FL, the premium student rent amounts seemed to drop off about 8 blocks from campus hub.

So any amount over that you pay (premium) you will not get that back if the property is redeemed and you will not collect any interest on the premium amount, correct ?   

I’d rather spend double to put in premium LVP or solid hardwood because I’ve seen 100 year old properties in Philadelphia and elsewhere with original solid hardwood.

*Edit: reread post and understand why you don't want to just build a duplex now.

I have about 2 dozen buildable lots with good title in a area where land often sells at a premium.