I heard this story last year and thought it entertaining but a bit concerning: https://www.npr.org/2017/06/23/533791342/carrie-poppy-can-science-reveal-the-truth-behind-ghost-stories

There is no blanket right or wrong to this - YOU have to decide how much risk you're willing to accept.I have many investor clients who insure their properties for well under the RCV and carry high deductibles on top of that.

Most of our tenants carry significant dept, often student loans, typically credit cards and personal loans.

I was taken aback recently when the tenant (1 year) asked me to seriously consider selling my house to him using an owner carry contract. 

There are no tail winds to speak of to carry you through bad decisions, but good cash flow opportunities exist.  

So I guess I will wait to use the fund after the full distribution has been carried out.  

Here is the flooring we went with: Pergo San MarcoThe texture and coloring is forgiving and the durability for water allowed us to carry the flooring into the bathroom, which saved us on cost of tiling!

The hard part about where I am looking is the carrying costs (i.e. taxes & insurance). 

In addition to what Wayne said the seller will have to pay imputed interest gain and will make almost or maybe ZERO cash flow if he takes this to an accountant .. or anyone who knows anything about these seller carry backs your going to have push back I suspect unless your paying WAY over market.I have sold a lot of my OREO over the years with ZERO % owner carry but always set them up short term.. 30 months 40 months that sort of thing ..

Any legitimate Environmental Consultant will carry the insurance.