You're better off just getting better insurance. 

Maybe insurance will cover it.The property manager can't possibly sit in a rental 24/7 to ensure nobody squats.

So 96,120 gross income lets say 10% expenses (they will add back in depreciation, taxes and insurance) = $7,209 a month x 45% = $3,244 will be your max PITI payment allowedI have a fantastic lender referral, @Sam Sharp, who is also an investor himself. 

A major reason I chose Mark was that his foreclosures are considered very thorough and there are title companies that will offer title insurance right away on tax lien foreclosures that he handles.

Our tenants have been insurance burn outs ( their house burnt down insurance is paying the rent) to those building Custom homes that will take 12 to 18 months..

I will not be using an LLC and so will pay landlord insurance and be able to make deductions directly from my personal income.

There are obviously other metrics that have to be met, such as the gross monthly rent has to be equal to greater than the total principal, interest, taxes, and insurance; that is the debt service coverage ratio (DSCR).

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Do you favor a Roth IRA, high-yield savings account, or life insurance as an investment tool?

To insurance salesman the answer is always life insurance; to stockbrokers the answer is always investing in the stock market; to a hammer the answer is always a nail.