Tai lopez it appears has really costs Norada Capital immeasurable harm. 

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

Run the comps, calculate repair costs, and plan multiple exit strategies so you maximize every deal—whether that’s wholesaling, flipping, or holding for cash flow.

My thinking immediately turned to researching local rental costs per square foot to determine income potential with triple the current square footage.

With down payments, improvements, commissions, title work, holding costs etc....

@Ben Syzek with $50k, you're probably looking at a property with a total cost (purchase price + reno) around $250k.

I think it just benefits current owners. our replacement cost variability just went up a lot for the next 4 years.

You can avoid costly mistakes. 

When I consider the risk and the rebuilding costs, I am surprised the insurance is not even higher price.We got a referal for our CA FAIR agent from the RE agent and they were real responsive. 

This also leaves me with $3,750 stuck in the deal (not including financing and closing costs, which could easily add another $20,000).In total, if I had to include closing costs and financing costs, I’d have about $23,000 (if not more) tied up in the deal and lose close to $700/month before accounting for expenses.