I paid it off within the year, so it cost me no interest. 

Also, how do you balance cost-effectiveness with providing a high-end feel?

"the typical home warranty costs $450 annually, and only 25% of premiums are paid to homeowners.

It is a small town, definitely a tertiary market right now, but that is where opportunity is going to be found.I think LTR, in the right location, can provide enough revenue annually to cover all holding and leverage costs while the resident pays down the principle and the demand in the city sustains slow and steady appreciation. 

Tenant shall be charged $[amount] to cover the cost of this force-placed insurance.The other lesson is that you should never hand over keys until you have proof the Tenant has met all requirements.

You said that the coverage of the loss and I assume the cost of legal defense was an "exclusion" to title coverage.  

I’d appreciate your perspectives.Here are the details about our current home:3/2 Class A property in a middle-America town with historically ~1% annual appreciation.Purchased in 2020 for $200,000 at a 3% 30-year fixed rate.Remaining mortgage: $150,000.Estimated value: $270,000 (based on recent sales).After selling costs: Likely $100,000 in net proceeds.Rental potential: $2,000–$2,300/month.PITI: $1,200/month ($700 mortgage + ~$500 insurance/taxes).Maintenance/CapEx/Vacancy (20%): ~$400/month.If kept as a rental:Net cash flow (self-managed): ~$500/month or ~$300/month with property management.Low appreciation potential but ~$400/month in principal paydown.Considerations:What’s the additional overhead of managing a second rental property remotely (3 hours away)?

Some may have very small thresholds for repair holdbacks on purchases but this is typically limited to make ready items not to exceed $2,500 in costs to cure.

My model is NOT good for LTR as it's not cost effective. 

Although the list may seem intensive, I look at it like this: The total cost of all these items can be much lower than the cost to repair a hidden surprise after purchasing a property to flip.