I've used it as a reference point, the reason being is that the 70% rule doesn't cover the amount of time it could take.How we buy properties is what is our cash on cash return?

Umbrella insurance is crazy cheap for the benefit, and it already requires you max out your liability on your other covered items.

@Cheryl Gilmartin are you saying that Anderson Business Advisors are in bed with Elite/RDPD, or am I reading your comment wrong?

You know that IU Methodist is building their new building with 900 beds. 

If you do, figure how many of these things you’d really fix, what that would cost, and how much of that you’re willing to cover.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

It covers all of my rentals up to a certain amount.

She rented out the second bedroom to a traveling nurse and found that the rental income not only covered half her mortgage but also let her save for her next property.

While insurance might cover the reconstruction of your property, the community's recovery could take years or, in some cases, never occur.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.