Buying Points, Insurance, and Tax Deductibles

[Jake Tansanco]

Hi, Everyone!

I'm a new real estate investor. I'm in the process of buying my first rental property and I have a few questions about buying points and etc.

Property value is $200k and I'm putting 20% down. Location is in Texas.

I was given these rates for today:

3.437% is costing 1.875%- $3000- Principal/Interest: $713

4.125% is costing 1.25%- $2000- Principal/Interest: $775

4.75% is costing .125%- $200 - Principal/Interest: $835

Can someone help show me a formula on how to determine if it's worth to buy the points and how long should I keep the house for it to be worth it? My strategy for this property is to buy and hold due to its high appreciation potential. I'm also deliberating whether I should not buy the points so I can save more money to purchase my next property vs buying the points to improve the cash flow. But for now, I need advise on the calculation.

If I do buy the points now, will it be tax deductible? 

For property taxes, is this also tax deductible?

Lastly, which company do you recommend for landlord/liability insurance?

Thank you.

Regards,

Jake