The new investment earns $24,000 a year, but the mortgage + the equity loan cost will be $22,332—and that’s before you account for taxes, insurance, maintenance, capital expenditures, vacancies, etc.

@Lance Turner recommend designing what you ultimately want it to be and then work backwards to create reasonable Phases to get it there.How much will insurance cost for all the different uses?

So long story short we have a traveling nurse staying at our rental that got some water damage when the roof was being replaced, they don't have renter's insurance (which we require in the renter's agreement they sign), water damage has been remedied and is cosmetically minimally affected and still very much in a liveable state.

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provide support for the property tax appeals process.

Once all three units are operational, you’ll have three income streams to support your expenses.Evaluating if it’s a Good Deal:Cash-on-Cash Return: After figuring out your total investment (down payment + repair costs + holding costs), calculate your net annual cash flow (rental income minus expenses like mortgage, repairs, insurance, etc.).

Add in insurance at another 75 to 100/mo. 

It will contribute to the importance of insurance (and contracts).I leased a Panama City, Florida, bay front fixer from a man that lived/worked out of the country.

This included projections for taxes, insurance, and other fees from the lender.

(Mistake #5 READ your insurance policy!!!).

Insurance Proceeds: Generally, insurance proceeds received to repair or replace property damaged in a hail storm are not taxable.