I ran the numbers and it looks like our house would not cash flow (between $0 to -$300 /mo) as a rental, mostly due to the astronomical property tax and insurance rates.

We work with builders, lenders, insurance, property management, and most importantly, We are boots on the ground.  

I've seen landlords held hostage for years by tenants who know how to manipulate the law.On the other hand, sitting vacant costs you the mortgage, taxes, utilities, insurance, lawncare, and other expenses.

Why wouldn’t you get an umbrella insurance policy instead?

Wholesalers typically do not carry Errors and Omissions (E/O) insurance, so even if the court rules in your favor, they might not have the financial means to compensate you.Furthermore, ensure that a reputable title company handles the transaction, as some companies may cut corners.

Do you think your insurance policy will cover you on any liability when they find out you are not running a legal operation?

There will be title issues, probate issues, original seller not willing to close issues, appraisal issues, hard money lender issues, family says grandma not in her right mind to sell at 50% discount issues, termite issues, foundation issues, structural issues, can't get insurance issues, I don't have any money to move out issues, or a whole host of other problems.Well...every now and then you find someone that wants to dump one and it is a clean deal and they think because they are not using a realtor, they're saving 6%. 

- What portion of the total budget should be allocated for marketing and insurance?

It's similar to saying that you should always put down 20% to avoid mortgage insurance—sometimes it’s smarter to put down 5% and keep more cash available for other opportunities.

it is hard to get on the radar of insurance companies.