Before you DIY this check with your insurance company this is not going to cause some exclusions in coverage. 

After talking to a few people about thier friends that started real estate investing in the same position as i am, most of them used credit to start off until they aquired the capital where they didnt need it anymore, or it was more of a supplement.

I provide some coaching and mentoring but mostly for people who have a job or own their own business but want to invest on the side for supplemental income.

My thoughts on this are that you are going to live SOMEWHERE anyway, and you will probably pay SOMETHING anyway - so why not get tenants to supplement that.

So, we certainly feel comfortable w/this approach w/safe leverage > 1.3 DSCR - Debt Service Coverage Ratio; 1.0 is B/E; 1.2 is min for bank loan; higher the better). . 

Another option is to add supplemental financing to a deal once stabilized and keep the original financing in place. 

The tenant carries no renters insurance (which includes liability coverage).

I bring up the time to 100% occupy because I'm pretty sure residential cash-out lenders look at the DSCR (Debt Service Coverage Ratio) as well when cashing out on an investment property.

I called my agent and they said I might be able to get liability ( in case this person tries to sue me) but I can’t get coverage for the house until this old owner is out if the house.

Long term I want to be investing in commercial real estate with a focus on multifamily properties to build up passive income to supplement my business income.