Your lender will have the exact details.If the current leases don't align with your timeline for moving in, another option is to explore a DSCR (Debt Service Coverage Ratio) loan or a traditional investment loan.

If you talk to someone like the folks at Wren Insurance Agency (from what I read in the Wall Street Journal), you’ll find they’ve been adapting to the shifting market conditions with some interesting coverage options.

I constantly get in arguments with real estate investors over loan leverage and perceived  risk when I say I will sleep better at night  as the guarantor of a  $6M loan backed by a $10M property in a good location that has high occupancy rates and meets a reasonable debt coverage ratio over the $80K loan backed bv a $100K property in a lower tier neighborhood.

With a DSCR (Debt Service Coverage Ratio) loan, you can tap into your equity and still retain the cash flow since it's based on the property's rental income rather than personal income.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

Hi @Inderpreet SinghAn Umbrella Insurance policy is a cost-effective way of getting your general liability coverage up.

If investors attempt to streamline their services, it can lead to a more organized approach to property management, lowers the risk of gaps in insurance coverage or missed tax benefits as well as simplifies communication and reduces confusion.

Then coverage extends.

You would have to line up carriers that accept LLCs on non-owner-occupied dwelling coverage.

It just makes life easier - they shop a variety of insurers and are more easily able to compare apples to apples because they know how the various companies present coverages.