The cash flow (or actually the net income before taxes) from the property (doesn't matter whether it is a single family or multi) should have a DSCR (debt-service-coverage-ratio) of at least 1.20 or more.

So, I supplement it by searching the applicant out on my state's court website which is free.

Keep it simple and get an umbrella policy for extra coverage.LLC property manager can't file in court the same as you as person, your liability coverage cost increases, any code violations are treated differently, your bank account cannot be not mingled...

Want to make sure we have good coverage and not missing any hidden red flags since we are out of state investors.

From the feedback I've gotten from the mockup, if you have coverage for at least 100% electricity offset, then it would work.

Your lender will also have minimum guidelines for what they require, but I recommend getting rental loss coverage on your deals.

Some of them get creative and get roommates, have to find a part time job to supplement their income or move to a less expensive place though that can be hard for long time residents as all of their support is in the area. 

Sometimes I play for supplemental income, sometimes I play for wealth/equity gain.  

My assumption is if 2nd floor patio door has overhang coverage, that’s a hard/steep angle of direct rain intrusion above the sliding door.  

For those people, I urge them to find a side hustle that can help supplement that.