That might be ok for a bank, who will only lend 80% of the contract price, who will require insurance be purchased in the event a buyer does not have the 20% down (PMI), but how does that in any way serve a buyer who is trying to use the appraisal as a negotiation tool?

Tenants only pay for Cable and Renters Insurance.

Hello,I am buying my first out of state rental property in Memphis in 2 weeks and need recommendations for property insurance companies, coverage types and amounts. 

I know enough to prepare State taxes where I compute withholdings, unemployment taxes, disability insurance etc.

Also keep in mind, with having this much of your own money invested, it may be a good idea to invest in a good umbrella insurance policy on the property. 

And for the sake of conservatism, let's guesstimate that the total expenses of the property (maintenance, water utility, property tax, insurance, management, and vacancy) will equal 50% of the monthly rent, or $250/month in expenses.So, thus far, we would be earning $250/month, or $3,000/year.

You'll be paying higher insurance for short term rental property, cable/internet, lawn care,  utilities, permits and furnishings.

Currently there is an auto shop renting the building.

So I was just feeling bad because its weird to raise the rent but I think I've been fair enough so far but taxes & insurance do go up every year & I feel that I am already renting super low - for a 4 br SFH they pay $1300.  

Some factors to consider in Daytona or anywhere close to the Coast is Insurance..