- Insurance is always higher with MF. 

Insurance is sufficient.  

Meanwhile they cannot articulate the liabilities these strategies will protect against, do not understand insurance or how to correctly operate the LLC's  they form.

FREDDIE MAC SMALL BALANCE LOAN (SBL)Loan Purpose: Permanent Financing (Refi & Acquisition) Loan Proceeds: $1,000,000 - $7,500,000Loan Sizing: 80% LTV; 1.20x DCR (Top Market)Loan Sizing: 80% LTV; 1.25x DCR (Standard Market)Loan Sizing: 70-75% LTV; 1.30x DCR (Small Market)Loan Sizing: 70-75% LTV; 1.40x DCR (Very Small Market) Amortization: 30 YearsLoan Term: 5-10 Year Term (Fixed), 10 or 20 Years (Hybrid ARM)IO Term: Partial Term IO (80% LTV; 1.20x DCR); Full Term IO (65% LTV; 1.35x DCR) (Top Market) IO Term: Partial Term IO (80% LTV; 1.25x DCR); Full Term IO (65% LTV; 1.40x DCR) (Standard Market) IO Term: Partial Term IO (70-75% LTV; 1.30x DCR); Full Term IO (60% LTV; 1.45x DCR) (Small MArket)IO Term: Partial Term IO (70-75% LTV; 1.40x DCR); Full Term IO (60% LTV; 1.55x DCR) (Very Small Market) Rate Types: Fixed & Hybrid ARMRate Lock: Rate Lock @ ApplicationNon-Recourse: Non-Recourse w/ “Bad Boy” CarveoutsPrepayment: Standard - Greater of YM or 1.00%Flexible Prepay: Flexible Options – Stepdown & Extended Open/Par Periods Rate Buydowns: Yes – Rate Buydowns Available Up to 2.00%Assumable: Yes – Assumable LoanCash Out Refi: Yes – Cash Out Refi OK FANNIE MAE SMALL LOANLoan Purpose: Permanent Financing (Refi & Acquisition) Loan Proceeds: $1,000,000 - $9,000,000Loan Sizing: 75-80% LTV; 1.25x DCRAmortization: 30 YearsLoan Term: 5-30 Year TermIO Term (PTIO): Partial Term IO @ 80% LTV; 1.25x DCR IO Term (FTIO): Full Term IO @ 65% LTV; 1.35x DCR Rate Type: Fixed RateRate Lock: Rate Lock @ Loan CommitmentRate Structure: Treasury Yield + SpreadNon-Recourse: Non-Recourse w/ “Bad Boy” CarveoutsPrepayment: Yield Maintenance; 3 Mos @ 1.00%; 3 Mos @ ParFlexible Prepay: Flexible Prepayment Options Available Escrows: Taxes, Insurance, Replacement ReservesRate Buydowns: Yes - Rate Buydowns Available Up to (1.25%-2.00%)Assumable: Yes – Assumable Loan Cash Out Refi: Yes – Cash Out Refi OK

Utilities $14,845, Insurance $13,530, Taxes $7,493, and on down the line items from there.NOI: That yields $85,350 in current run rate NOI.Lessons learned?

Monthly payment comes to $917,  plus another $350 for taxes and insurance so ~$1280/month due to the seller.Using a private money lender to fund the deal, borrowing ~$130,000 @ 10% interest rate, interest only, principal + interest paid as a balloon after completion  or 12 months.House is a 3br/1ba 950sqft. near a university.

Just in time when you might see end of year home prices taking a little dip since some sellers need to get properties off of their back to avoid paying taxes and renewing insurances again for new year. 

There is an alcoholic exclusion in most, if not all STR insurance policies, so no I would not recommend it.

Like others have said, you don't need an LLC to get started with STRs.If you own a single unit or even 2 or 3, simply make sure you have the best insurance to cover any issues as well as an umbrella that can cover any excesses.Plus the major key will be maintenance.

While I do tell people they should have travel insurance, especially planning a trip to SWFL during hurricane season, I also try to be understanding under special circumstances.