FL Insurance on multifamily....killing my deal

[Michael Zagorsky]

I am looking at two 4-plex's in Palm Bay which gross about $58k a year in rent.  The owner is looking for $400k.  

The problem is that the current owner has them free and clear and does not carry any insurance on the structure.  Im going to need a mortgage and based on the Sq ft replacement cost I'm bring told by insurance agents I need to insure them for $800k combined, which will be $8-$10k a year and that really eats into my cash flow forcast from these.

Anyone have any idea of a how to get the insurance costs down to a number that would let this deal work out for me?

[Wayne Brooks]

Insure  for ACV, not replacement cost, to lower the rate.  Not all co.s offer this.