It is my understanding that financing with a bank mortgage in 1st position and a seller carry back in 2nd position is something that was allowed prior to 2008 but has since died out.

If you are buying as an owner occupier you can do a 5% down with a carry loan for no PMI (assuming you have good credit and if you don't, start there!).  

Any way.. carry on.. !! 

Use the same format as on Schedule E.I would also not only carry insurance on the rental property but add an "umbrella" policy.

@Angel Morales I have purchased flips using owner carry terms  I gave them a 10-20% down payment at closing.

Owner is willing to carry the note at 0% for 20 years with the stipulation that they are able to live rent free.Owner wants 30K upfront, $2000/mo and live rent free for 20 years.I ran this through the BP rental calculator and obviously the CoC ROI is horrible (-2700/mo PITIA). 

Carry pepper spray and a gun on you at all times, because sometimes criminals get drunk and high and do really stupid things.You are The Man.

Your insurance that you carry with an umbrella would be good enough.  

I'm not sure how to prove that, but if correct changes the expenses again. 2017 it was $100. 2016 $4053.With this new information, I was able to negotiate with the seller for a purchase price of $450k with 50k or 10% seller carry back, which I think sweetens the deal.

This would be a great thing because depending on the needs of the seller, 25-35k could go a long way(They'll most likely want a decent down payment if they're going to carry the contract.)