Do you have any recommendations for reliable contractors and handypersons in Cleveland area? 

@Gabriel ShapiraThe investors that I have talked with lately and others on BP seem to be very interested in the Charlotte area. 

So, would you suggest doing this and putting him in 1st position, once the home is completed have him removed from 1st?

You'll have to check that agreement to see if you can cancel earlier.

Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

For this reason, it is generally best to have the LLC registered or qualified as a foreign entity in the state where the property is located to avoid complications like this.

Do you have a realtor?

Now that same house you could have purchased for say $300K is now $325K+.So if you would have purchased that same home at a higher rate you are paying less versus a lower rate on the higher sale price.

- What are my real risks in the event that the building is destroyed in an earthquake event and I DO NOT have coverage?

Another you could have done was to call a few other PM's in the area and get their take on the rent range.