We have a service speciality of taking the stress out of 1031s since we have 3 markets (Memphis, Dallas, Houston) all under one property management umbrella.

And make sure to account for the following expenses:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance a) Property Hazard Insurance (0.3-0.45%) b) Flood Insurance c) Earthquake Insurance d) Umbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy) a) Water § Sewer § Garbage b) Electricity c) Natural Gas d) Propane9) General Maintenance (usually 5%) a) Upkeep § Landscaping b) Snow removal c) Repairs d) New Appliances e) Make ready10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.), including...

Our attorney advised our LLC to have E/O coverage along with an umbrella policy in the event of a lawsuit.

I investigated quite a bit for my own out-of-state rental properties and I decided to go with umbrella insurance rather than an LLC.

It might be more economical (and easier) to just get a good umbrella liability policy for the cabin and skip the LLC.

You can also explore umbrella insurance policies.

Personally, I am happy to pay money for insurance in general for the peace of mind and protection and most of the rehabs I do could be considered major.Some investors also like to use an umbrella policy for cost purposes and what ifs.

I think this is BS but I do not know enough to argue with lawyers on this.The advice I was given was to separate chunks of properties into separate LLCs, and have a healthy umbrella policy.

I get good rates on my condos with farmers, and on my umbrella liability policy as well.

I also put an umbrella policy on my properties.