Insurers have become extremely conservative over the last year.

I believe shared housing is going to become more popular, due to the lack of available housing throughout the country; and lenders, insurance, etc. will need to find ways to accommodate their use. 

if it burns down, I will have insurance.  

Also make sure they have proper license and insurance and name you as additional insured for liability.

Obviously that’s different than a spec home though and we have opted to not want to deal with a home owner and bank during the build process at this point.Hope this helps some.

I’m aware that money is likely going to be spent but, assuming it doesn’t, then can you still make tax free cash flow simply off of the recurring deductions like interest, management, hoa, utilities, taxes, insurance and depreciation? 

As you stated, that leads to higher property taxes and higher homeowners insurance as well, and when combined with higher property values and a 150% climb in interest rates, it compounds affordability issues.

After the 2 hurricanes maybe only 25% were still on the beach, but the hurricanes were a pain and resulted in our insurance going up significantly. 

$30k in equity and 100% cash flow besides taxes and insurance.

These agreements enable homeowners to access their equity without taking on additional debt.