You need to go and find some local banks who have an appetite for that type of property in that area.

It's just a matter talking to enough bankers to find the one with the appetite.

You know your risk appetite, you know what the rest of your investment porfolio looks like, you know your own cash flow needs and retirement goals.  

Some investors with more appetite for risk might consider it. 

Pricing varies significantly by region and insurance companies underwriting practices and appetite vary by region.

Perhaps a good starting point would be to determine what your appetite for risk is and work from there.

It was an online auction that got bid up between me and one other investor, so I knew the profit was going to be tighter when I worked out my max bid, but with less inventory and more investor appetite, I knew that a $30-40K profit on a flip in that price range was to be expected.

Given this - the biggest change in my appetite is to look far beyond my comfort state (NJ).

Rate is also risk/appetite based, and for someone newer to the scene could be closer to 5% (the above isn't a quote by any means, very much speaking in generalities). 

Portsmouth, because of their greed and appetite, is penalizing the very people that can bail them out of the Muck & Maya....