Insurance is confusing as there are so many variables and decisions contingent on an investors risk tolerance, portfolio and market location.I urge anyone to ask their agent how their policy will reach to some of these claim examples because all policies are not uniform in coverage and all state insurance laws are not the same.Based on all of the above comments, keep these items in mind;- Some insurance policies will have a Coinsurance clause, which will penalize you for insuring for less than the Replacement Cost. 

Some states also have strict limits on Wells and then you have to have a certain psi per connection. 

From my understanding, more than most other markets.Having a property manager who not only knows the regulations and implementing them, but keeps up with the latest laws would be beneficial.  

You're in a very tenant-friendly state, so read your landlord-tenant laws and follow them carefully. 

I suggested to her that we buy a home for her father (my father-in-law), have he and I do the rehab, and he’ll live in it after rehab, we should be able to get a small amount of cash flow once done.

If your investment horizon is short, be sure verify that your state's homestead laws and bankruptcy rules won't allow this co-owner to exempt this home from debt collection. 

I use a lease because if I ever want to sell a place and want it empty I can't evict them due to the local laws.

For us, they always stay and adjust to the new reality.30-DAY NOTICE OF RENT INCREASERCW 59.18.140  (reference to our state's landlord-tenant law, replace this with yours)Tenant: ____________________________________________Address: _____________________________________________Dear Tenant,As I’m sure you’re aware, during this past year rental rates have increased significantly in our area.We have personally experienced increased costs for taxes, utilities, maintenance and repairs.Therefore, we must increase rent for the dwelling you occupy.This notice is given on the date of:_______________________Effective date of change in rent:____________________New rent:____________________We value you as a tenant.  

VA loans have some strict requirements so a flip candidate probably won't meet the loan requirements.

Brinkworth Law Office  - ask for Maryalice (paralegal) and let her know I sent you.