Hopefully your insurance policy also compensates you for loss of use - where it continues to provide you your rental income.  

Looking back on where we started from, both working at fast food restaurants, I am honestly in disbelief and extremely grateful.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

The first rule of gambling is that no single loss can wipe you out.

I lent $225,000 of which $185,000 was for the purchase of the property and $40,000 is going toward renovations.As a lender I just want to get back my loan amount back (in this instance $225,000) if there is a total loss with the property.I have seen where a lender tells the insurance agent how much property insurance he/she wants based on a price per square foot calculation.On the other hand I have also seen where a lender tells the insurance agent that the amount of property insurance should be the loan amount in this instance $225,000.

Ybor has been up and coming for years, so much to do around great Cuban food, trolleys, new bars.

If price goes down, I still have the paper loss whether I have paid it down or still have the mortgage.

In life we get caught off guard with Health issues, Death in the family, Loss of business or jobs (Unexpected pandemics!).

As for value, a similar property down the street sold in the mid $800's in Q4 of 2023.Closed in December on a 6-plex in Berkeley with an in place 9 CAP, with 3rd party property management in place.I am in contract on a 4-plex in the Adams point area of Oakland, within walking distance to Whole Foods.

My thoughts are a fast food restaurant with a small apartment building on the other side.