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

I mean, you can, but you won't be in city compliance or insurance compliance if something were to happen to them.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Add a very diversified economy here with banking, insurance, oil and gas, education, three medical schools, 3 law schools, life sciences, DFW airport, and so much more, it looks like the growth just goes on and on.As far as appreciation goes, that's always tough to predict. 

They are in partnership with Obie for Fix & Flip type insurance (builders risk, etc).  

Income Late fee Gross rent Expenses Advertising Cleaning Gardening/lawn mowing Insurance Interest on loan(s) property tax Legal expenses Pest control Property agent fees/commission Repairs and maintenance Water charges Electric Bill Total expenses Net rental income or (loss)

Take a look at the rents for both sides vs current mortgage payment (if any), new payment on the cash out or HELOC, taxes, insurance and HOA (if applicable).

Like @Jay Hinrichs said, it's just cheap insurance..... my clients that buy my new builds will do sewer scopes as well.. we have not had any bellies but we have had debris and rags etc stuck in them.. better to find them up front than to have a back up in a brand new 750k home LOL..

After it's rehabbed, you could then rent both units and use the cash flow to offset another primary residence or potentially refi and use those funds to scale your portfolio.I wish this policy change was being talked about more because it unlocks a creative new strategy for investors in MA, since you do not need to owner occupy to do it! 

The accounting system allows you to keep track of costs like mortgage payments and amortization with insurance and taxes as well as part of the asset management.