Omar Khan, you're correct I don't know you and I'm sorry if you took this as me casting doubt over your character.

@Haider N.The correct way to insure this location is to have the policy listing the entity holding  the deed as the "Named Insured". 

@Andy Mirza that’s correct

THE LENDERS NORMALY WANT YOU TO HAVE 3.5% OF THE LOAN TO BUY A HOUSE IN YOUR SAVINGS CORRECT?

I am not counting on appreciation for any of this even though I include it in the IRR calculations above which I know may not be the correct way...

Correct.

With our current economy, what strategy would you start with to advance your RE business in the CORRECT way to capitalize on the best returns in the least amount of time?

With our current economy, what strategy would you start with to advance your RE business in the CORRECT way to capitalize on the best returns in the least amount of time?

Also good to make sure you have a valid contract with everyone who is on the deed (or the correct entity.)You may have already done this but I would highly suggest recruiting a team to help you evaluate this opportunity.

You said one of your first properties so if you have a few properties and this one would just be too much for you to manage I understand, otherwise it's a small property and once you got it going should require very little of your time if you manage it correctly and would save you thousands!