Option 1 - NOI = Rent - (maintenance, vacancy, management, property tax, insurance)or Option 2NOI = Rent - (property tax, insurance)in both cases i assume DSCR = monthly payment/NOI

You will have to gather more accurate operating costs (vacancy loss, taxes, utilities, insurance, mgmt fees, maintenance, HOA) to best determine potential future performance.

Can you suggest an insurance company and contacts for our rental houses?

Here are a few things that I like about the neighborhoods in Indy compared to other states: high rent-to-home-value ratio, consistent and gradual city development, relatively low property tax and insurance cost, affordable renovation service cost.From my experience, it's possible to find deals that meet 1% rule if you invest in *turn-key* duplex or SFH here, but they are harder to find, and could potentially slow down you from scaling up.

CA has it's upsides and both states have insurance issues.

@Kathie Mata   appliance insurance may work in some places, in my area is quite slow to show up.   

The mortgage was also raised due to insurance issues to about $1,950… so I am not making much cash flow, more like a cash trickle.

What is on the insurance application that you signed? 

Quote from @Jake Thorpe: In this industry, there is a lot of incentive to bend the truth, some say dont say x to the lender.. and if something happens dont say y to the insurer. 

I forgot to add that the insurance and tax is included in my mortgage of $2,005.