Based on you situation and property they may suggest one or the other type of coverage.If possible get quotes with Special form coverage and the building valued at Replacement cost. 

Now, if I can buy this home for, let's say, $95k-$100k (and assuming I can pull out about $85k-$86k based on your calculations), would it still make sense to go after this 3rd rental property?

One thing though, if someone cash out a large chunk, say $1,000,000 to be put in RE the tax will be higher than someone who is drawing the required RMD of say $45,000/yr for 26 yrs. 

Credit Score-Based Loan Options: Conventional Loans: These loans sometimes have low interest rates but usually call for a better credit score.FHA loans are a popular option for first-time homeowners since they may be obtained with lower credit ratings.Hard money or private lenders: Although borrowing rates may be higher, some of these lenders may have less stringent credit score criteria.4.

Following - I'm based in the Bay Area

This iterative approach accelerates wealth-building over time.Stay Adaptable:Real estate markets can be dynamic, so be ready to adapt your strategy based on changing conditions.

We base all of our finishes off of affordable housing and tract builders.

It's a property that another investor couldn't complete and, based on comps, there's it's $150k under ARV. 

I am based out of CA and would like to invest in state preferably. 

The areas available to you can differ significantly based on how you plan to purchase the property.