That's three months of mortgage and utilities, the cost of flooring, and the cost of painting.

You could raise your deductibles on your existing insurance policies (consistent with any mortgage on the property) or talk with independent insurance brokers to see whether you can find a better policy. 

Plus the amount they paid just about paid my mortgage.

and then getting a standard mortgage after that vs. getting a construction loan to pay during the build and then convert. 

Quote from @Jay Hinrichs: Good Morning Don,I think most Note investors or those originating new loans/mortgages usually stick to one camp or the other..

Renting to Section 8 Long-Term TenantPurchase Price = $237,000Renovation Cost =$8,950Appraised Value = $310,000Monthly Rental To Section 8 Tenant = $3,215Monthly Mortgage Payment = $1,890Monthly Reserve for Maintenance and CapEx = $200Monthly Cash-flow = $1,125Another investment property was closed and added to my rental portfolio.

Quote from @Marcos De la Cruz: Quote from @Drago Stanimirovic: For a single-family rental (SFR) that's free and clear, meaning no mortgage, the acceptable minimum annual cash flow depends on your investment goals, location, and risk tolerance.

A good indicator is the property tax rate (Rocket Mortgage).

I asked my CPA if I should check with my mortgage company before transferring the deed, but they advised that I just do the transfer through an attorney and not explicitly inform the bank.A few attorneys I consulted also had mixed responses, saying it may or may not be an issue, and that many investors do it without problems.Instead of transferring the properties directly to the LLC, would it make more sense to:1. 

Also, cash flow from the rental needs to cover your mortgage, insurance, and taxes.