I would also recommend umbrella insurance equal to your net worth.

In the next few months, I'm looking to get a standard CA NAA lease with RUBS included for billing the water and sewer, as well as requiring tenants to have their own renters insurance, as that is not something they are currently required. 

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

Realtors also have insurance, tons of regulation, and hopefully experienced brokers that are all very interested in protecting you from scams during the home sale process.This is a scam. 

From my understanding the 15-18% IRR promoted by syndicators generally does not include these tax benefits either, so it is still a fair comparison.AssumptionsI had to make a few assumptions about the property and mortgage interest rate:Property value = $180,000Rent = $1680Mortgage Interest Rate = 6%I also made assumptions related to other costs such insurance, taxes, property management, maintenance, capital expenses and vacancy.

I would you to think long term as far as rent appreciation, insurance (which keeps ticking much higher each year), and property taxes (which may get reassessed when you purchase the property). 

Quote from @Zachary Engen: I just got 2 airbnb up and going last month and I have a property manager, he also gets MTR insurance bookings.

(average of $400/m) $7000 annual expenses roughly- insurance, septic Mgmt, lawn care, etc.

Holding onto it is a smart decision, and you're entering property investing in a solid position.To get started, focus on ensuring that the rental income will cover your mortgage, taxes, insurance, and any maintenance costs, leaving room for profit.

It's critical to to get references and work with BB&B-accredited and fully insured companies when this amount of money is involved.