Additionally, ask your hazard insurance carrrier how the transfer would affect your existing hazard insurance and business liability coverage.

I'm looking for personal umbrella coverage.

BRRR relies on leverage, so you need to be sure your rent won't drop below your debt service coverage. if you also have no equity, you're in a TIGHT spot with no movement. the real trouble with crashes isn't just that your business might take a wack, it's all the stuff that happens around you.

and are they quoting you for earthquake coverage? 

You must require that all tenants have adequate insurance coverage to protect third own homes.

I feel like this is too high but I feel like I may have not asked the right questions or I may have too much coverage. 

The house next door rents for $350 per night and it's just a standard house with no pedigree.With that said, corporate events and weddings would be the big revenue generators supplemented by guided tours when the house was not rented.What I would do is renovate the interior of the house to match the interior of the Brady Bunch TV Show.  

The downside is restrictive guidelines, a ton of paperwork, lack of flexibility.Commercial types of financing have pros that are flexibility in guidelines and structure you can do all sorts of stuff from substitution of collateral to partial lien releases on blanket commercial mortgages to cross collateralization and many others, less documentation than conventional financing products, use of debt coverage ratio (DCR) as opposed to Debt to income (DTI) and if you compare DCR to DTI the commercial lenders go up to 80% DTI since the reverse of 1.25x DCR is .80 or 80%.There are downsides to commercial financing and that is the convenants with in the mortgage note that can allow the lender to call the note so make sure to read all the definitions for what substantiates a "default," by the lender you'll be surprised by the definitions and language at times. 

Since you don't have the capital to do the deal without the IRAs to supplement your capital, your IRA is enabling you to make the transaction and personally gaining by the IRA's involvement in the transaction.  

I'm a west coast kid who now has hit midlife and wants to build a few rental properties to supplement retirement.