I know everything depends on personal circumstances but let's say the property is worth 104k...90% financed....insofar as liability and hazard insurance what is a good rule of thumb?

Having worked on deals for Shawn that came close (including some 7 figure ones), the bottom line is that you want to do two things:1) Talk to a lot of people that want to change their current circumstance.2) Find the solution that works for them.It isn't magic, but it is hard work.

The right choice really depends on your personal circumstances like it does with the choice of entity for people.

You should definitely try to determine as much as possible about the seller's circumstances, and what business interests or other things are going on, aside from this property.

This is very important to me as far as making this a workable deal given my circumstances.

Unless your circumstances change it is going to be almost impossible for you to make this happen unless you find someone to assist you through this.

Ebere,I must distinctly disagree with you as IRS rules and regulations state that all expenses in preparing the property for rental activity(defined as listing for rent or actually renting which ever comes first) are added to basis.He inherited the tenants when he filed for the deed of a home in which as he stated the intent was to flip.

Everyone's circumstances are different.

Now, Mike, I'm not a lawyer, and I think you should consult one if you want to find out exactly what you can and can't do in these circumstances.

Most people hold rentals in an LLC, but it depends on your specific circumstances, and objectives.Also, join your local Real Estate Investors Association.