Insurance : This area of consideration deserves its own deep dive so we’ll briefly highlight key concerns. - The underinsured.

Explore the possibility of doing liability insurance instead, if you don't have much equity it may be your best, and much cheaper option.  

Many properties will need specialized attention, especially with plumbing, electrical, and historical elements. 

The hilly terrain is a main reason for this and you can't really see that on a map so knowing the areas is key.We have old housing stock as well so big things like plumbing and electrical can vary cost wise if they have or haven't been updated.

There will be no assessment for increase in taxes or insurance so remains at $1935.

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

The Homeowners Insurance will include Builder's Risk.

If you are trying to get a cash out refi, I would think the bank would want to see the correct type of insurance for the business you are running.

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

Enough immediate cashflow to balance out the mortgage, taxes and insurance.