This starts early on with preventing what could potentially go wrong by attracting an awesome tenant and looking at what vulnerabilites currently exist in your property.  

Quote from @Robin Simon: Agreed - but a conflict of interest can certainly exist with all good actors involved - I don't think it's relevant.

Things are becoming over saturated by the day.

The existing loan I obtained 6 yrs ago was a DSCR loan with a one year ARM - no prepayment penalty, that is coming due in October.

This policy will provide additional coverage above what your existing policy covers.

This may also be a candidate for a subject-to type transaction where you take title to the house "subject-to" the existing financing. 

In the process of BUYING a PURE Option to buy a SFH subject to an existing loan (at a lower fixed long term interest rate)Let say the OPTION "Strike price" to BUY the property IF or WHEN the OPTION is EXERCISED is $300K The seller wants $60K to sell us the OPTION. 

Talk with your current lender and cross collateralize the existing properties with the new property.  

Any case, it's such a saturated market that rentals are going for $125-150/night if I'm lucky.

@Nithin Thampi You will likely get more bang for your buck buying an existing property as opposed to new build which often has higher cost per sq. ft. than existing properties will.