However I just realized there was a mistake in one of the tenants' lease! 

There is realized gains & profits, and UN-realized gains and profits.

Does anyone know how insurance companies evaluate these properties and whether or not real value can be realized for insurance for renovation? 

I am interviewing property management companies in Columbus and ran upon Realize Property Management Company. 

So, many people in your area may not realize its negotiable and just assume its always handled a certain way.

@Kasey Hardt very interesting,  didn't realize this was a pattern but even I've got friends that are getting recruited to the area for medical device startups etc, so could be a very interesting trend to watch.

I realize people are trying to make a living, but anyone who cold calls me is the last person I'd use for any transaction (plus I have people for that!).  

They were experienced investors, so they had an idea of what they were looking for and realized they may need to get creative due to the lack of inventory in the area.

A friend of mine had a similar journey - they turned their old home into a rental property and soon realized they loved managing tenants and exploring ways to add value.

Eventually I realized that you really just need to look for a deal that fits your criteria.