The total monthly cost of the mortgage and the HOA is $680, so if I were to rent the property out at $1100 per month I would be clearing $420 a month before setting aside money for maintenance/repairs/vacancy coverage etc. 

Zander, to add to what Wayne Brooks said - for any property that is vacant in the process of being renovated you need a policy that acknowledges that - typically referred to as Builder Risk or Vacant House coverage. 

While the insurance arms of the banks will sometimes undercut other providers, my first question would be whether the coverage was the same between the two policies?  

I think good insurance coverage would be enough to protect you from that type of liability.

Hey @Taft Love -- you don't need to pay anyone for comps, especially when you have good Spokane coverage on Redfin.

I have about $2m of coverage there. 

There are more markets than not (CA cities included) where the rents don't allow for cash flow or even expense coverage with the property prices.

Ultimately any lender will look at you debt to income and also calculate your debt service coverage ratio for both the new property and the existing property.

So far everyone has quoted me a really high price, north of $1400 (about 7 companies) and they don't do cash only coverage.

I'd do a quick search to get a more comprehensive answer.To give you a quick answer, consensus is no.