I'm covering the leverage and have reserves in place for any capex expenses.

Quote from @Chris Kittle: Quote from @Trevor Finn: Hi @Chris Kittle,Your list covers the essentials!

You need to be skeptical of track records that only cover the last 8 yrs.  

It didn't occur to me when I shopped for this policy, but will our rentals even be covered due to different ownership?   

Insurance companies often pay for temporary housing for families displaced by things like fires or floods, and they usually cover full rent!

For a flip, you'll want to get a builder's risk policy, which covers the property during renovations, including any damage from fire, vandalism, or weather while it's vacant.

This is what I think I know:- The borrower can choose to pay off the note at any time (by selling the property or just paying off the loan with other funds), so it is important that the legal balance covers my investment and some profit- The borrower could file bankruptcy (can someone confirm that this will only cause delay, but not jeopardize ultimately collecting the legal balance of the note)- Most of these DOTs will have a rent assignment clause, so I could try to enforce that and collect rents from tenants (essentially manage the property) while I am holding the note and trying to foreclose.

I would then probably consider putting down the min. downpayment on a duplex up to a fourplex, for a place to live and rent out the remainder to  cover the mortgage and expenses.  

So the question is - why would someone entering a deal/assignment need a gator to cover EMD?

Hey Dave, since I have mortgages on these properties, would it make sense to bring cash to the exchange to cover the mortgage amount (or pay off the mortgage before doing the 1031) and improve the cash flow for the newly acquired property?