you're "out of pocket" those costs, plus maybe a month of vacancy.my point - you're basically always out of pocket on a rental. sometimes the rent more than covers everything, other times it doesn't. 

I wanted to cover my why and what first to give a good picture of where I'm at current state, with a background and what I'm looking for below.My why: I recently got married and moved from San Diego to Scottsdale this year.

Typically I’m seeing higher appreciation than cash flow but it can be hard to tap into that equity if rents won’t cover the new cost of the refinance.

Our property has cash flow and according to the many bigger pockets podcasts I’ve listened to you shouldn’t just pocket all cash flow but set aside a percentage to cover reserves, CAPEX, vacancies etc.

I got my first one with a 5% down while the tenants were covering almost all of my mortgage.

Does renters insurance cover something like this?  

Make sure you have adequate reserves to cover unexpected emergencies.3) Time-intensive - If you live on-site you're a live in property manager on call 24/74) Legal issues - know the max occupancy laws for your area.

I have high revenue from my rentals and have diversified other investments that cover my lifestyle.  

As I mentioned above, the risk of being sued, found guilty, and fined more than your insurance will cover is almost non-existent. 

Think beachfront condos that not only cover their costs but actually give you solid cash flow.