It cost money to insure, in some cases bond and carry the liability of a job taken.

I am already licensed and insured as a contractor so that I can pull my own permits.

Are you also doing a title search with title insurance? 

Some people like to use debt to limit their liability while other like to eliminate debt as quickly as possible to insure as little money as possible gets paid out in interest.

Honestly, rates are not THAT much higher especially since you can get approved with one, and you won't get approved with a bank.

Is anyone, especially sponsors who are doing syndications, familiar with D&O insurance & do you have a referral for a good insurance agent/broker who deals with these kinds of business insurance?

Overall, the mortgage, taxes, and insurance will add up to about $1850 a month. 3 bedrooms in the area are all above $2700/month.

In Indiana, residency restrictions are only applicable as parole conditions, and all housing for those under supervision has to be approved by the PO before one can even move into a residence, so it is obvious he is there legally. 

I can imagine it will be tough to get pre approved from a bank.

. $500 ea. in profit after loan pmt , taxes & Insurance and a small amount for maintenance fund are taken out.