Years ago we didn't require it and just recommended it to the tenant, but it's so cheap and gives our insurer something/someone to abrogate against should we have to make a claim that we don't allow it to be optional anymore. 

Have quite a few out of state investors that we've worked with to get them great cash flow and tax savings. 

Also make sure to consider all the aspects you can including the tax differences. 

What started as a promising BRRRR ended with us making the tough decision to sell at a loss after an unexpected disaster.The Numbers:Sold for: +$230KPurchase Price: $115KClosing Costs: $3KRehab Costs: $105K ($49K original rehab, $56K additional repairs due to the car crash)Holding Costs: $31K (12 months)Selling Costs: $16KInsurance Claim Recovery: +$25KNet Income: - $16KWhat Happened:This was supposed to be a BRRRR.

Before you close, can the rent from your buddy and the midterm tenant cover your mortgage, taxes, insurance, plus a bit extra?

@Tar-U-Way Bright Using your LLC for real estate ventures offers legal protection and tax benefits.

And would this be considered "capital gains" since it's re-sold under 1-year therefore having to pay a large % of tax on the profit?

And given #3 above, it leaves about 20% of rent for all other expenses like property tax, insurance and other PM expenses like leasing fee, eviction fee and other minor expenses like for e.g landscaping, pest control etc.

I found this one https://www.titlesearchcourse.com/faq/ its 69$ and the person who created it also has a youtube and specializes in tax foreclosure properties which is what i do.

To make a new property cash flow with current prices, interest rates, taxes, and insurance, you're putting at least 40-50% down.