Assuming the numbers reported to you are valid (always a big assumption until proven), you'll struggle and likely fail to get this project financed as the debt service coverage ratio (DSCR) doesn't work except in the last scenario presented above.

The difference is who is covered (you the buyer or the lender) and the amount of the coverage.

There's no insurance coverage for tenants who live like pigs.

Ben, I have yet to meet a single HOA that know jack squat about insurance coverage.

That at least means coverage at the time you setup the HSA.

I wouldn’t have had offered such generous price for this house in order to ruled out my competitions; $13K above its REO listing price; only if the agent isn’t seemingly tried to pulled a fast one on me to avoided most buyer’s HOA syndrome, besides the seller’s agent was manipulating the selling price as well… my agent is just now requesting the HOA service coverage from the escrow for me… Any thoughts / advises would be appreciated.TIA

I know some of the gurus say just send a change of payment address to the insurance company and leave the coverage alone but that is a very bad idea.If something happens and a claim is filed the adjuster will find out a renter lives there.

Debt coverage ratio.

No specific recommendations.A key ratio for the lender is "DSCR" or debt service coverage ratio.

It sounds like you are doing great with COVERAGE, just not as good with IMPACT.