Throw in some extra costs like moving expenses, professional photos (a cost the STR PM may also need to pay depending on the quality of the existing photos), renter's and lessor's insurance and a listing on furnishedfinder to round out some of the start-up costs.

I've seen landlords held hostage for years by tenants who know how to manipulate the law.On the other hand, sitting vacant costs you the mortgage, taxes, utilities, insurance, lawncare, and other expenses.

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

Wholesalers typically do not carry Errors and Omissions (E/O) insurance, so even if the court rules in your favor, they might not have the financial means to compensate you.Furthermore, ensure that a reputable title company handles the transaction, as some companies may cut corners.

Do you think your insurance policy will cover you on any liability when they find out you are not running a legal operation?

As long as you have some residential areas where RVs and Boats are a pain to park or not allowed at all you will have customers. 

- What portion of the total budget should be allocated for marketing and insurance?

Carrying costs in purchase and or rehab is financed, cost of capital on refi, re-recording, title, updated insurance, etc. their are many costs at play after initial funding then to transition long term unless your straight cash on the front end.

Is it possible to cover your mortgage taxes and insurance through what the average market amount is in the area?

Additionally I spent $35,000 on property taxes, $17,000 on insurance, $35,000 maintenance and repairs.