Landed my first deal - help calm my anxieties and analysis paralysis please

[Justin Dziedzic]

So as the title states, I just landed my first deal. 120k property, appraised for 128k and I will be adding new carpets, paint etc - just some light rehab. Mortgage, taxes, ins, etc will be about 1k (requires flood insurance) and market rent is about 1400-1600. So, on paper, it will cash flow fairly nicely. The only larger CapX that is potential is a new roof within the next 5 years - everything else is less than 3 years old, windows, electrical, furnace, hot water heater. 

Of course, as per usual, I am getting all of the negativity from the peanut galleries about lawsuits, etc. So my questions are:

- I have umbrella insurance through my home owners insurance that will cover up to 500k liability, those more experienced, is this enough? Being that it is in my name and not an LLC, I am concerned about that

- What do you use for leases, etc to ensure that you're covered? I know there are some here, wondering if anyone can point to a template for me? 

Being that I'm about to drop almost $40k on this, I'm having a lot of analysis paralysis and second thoughts haha. I appreciate any assistance! 

[Bryce Jamison]

In my opinion a lot of the stories you hear about someone tripping on your property, hurting themselves, and suing you for millions are just that, stories. I know there are some cases like this, but I personally don't know anyone that's ever experienced one. 500K should be more than enough to cover you, but also ensure you renters get reputable renter's ensure with you as an additionally ensured home owner. You can dictate what's covered and the amount. This scenario is often cited as the reason to put your properties in an LLC, but a judge can still hold you personally liable for damages. It's called "piercing the veil".

I use Zillow to list my properties and draft leases. It's free and you can add in your own clauses to the lease. Doorloop.com also has free templates.

In general, make sure you have a healthy emergency funds. This will make a lot of the worry go away. To take it to an extreme, if you had 10 million cash would you have any worries?

Good luck!