Sure, lots of homes get hit by tornadoes... but there are 1.7 million homes for the tornado to choose from... so if a couple of hundred homes are impacted by tornadoes in a year, that is 0.00011% of the houses in Oklahoma getting hit... but just like hurricanes it makes for great tv coverage, so it's easy to see where you would try to worry about it.  

I know that @J Scott wrote a pretty good book on the process though, (just finished it this weekend), and I would recommend starting with that.If you purchase the book(s) from BiggerPockets (as opposed to Amazon), they come with a bunch of digital files to supplement the material. 

I would need to probably include farm profits in my calculations because the hope would be to eventually farm full time, but also supplement current income till I can move to farming full time. 

Hi All, I am a landlord in NJ and am seeking your guidance on what kind of renter insurance coverage I must make mandatory to the tenant.1) So far I have been asking for following bare miniumum coverage.

I think he might just increase his insurance liability coverage per property.

I personally don't like pay too much attention to ProForma as I can't predict the future so I usually just like to know if cash flow is good AND more importantly if I'm financing, if the DSCR (debt service coverage ratio) is high enough to safely qualify for financing (usually above 1.2). 

Instead, focusing on solid insurance coverage and reducing risks in your day-to-day operations can be more effective.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

Coverage would be close to 100%, depending on the interest rate and what rental revenue is assumed during the purchase. 20-25% down is fine.

Adding an umbrella policy could boost your liability coverage, but it won't replace landlord's insurance.