Hi @Justin Buckner  We, 6 partners, raised $510K among us to cover the down payment & closing cost, and the rest was financed through a local community bank.

Do I just leave it as is (of course making sure I’m covered for liability) or do I fully insure and continue applying for the loan?

WIll your insurance cover it?

An investment property only requires 15% down even up to 4 units and only 10% down for a Second/Vacation home.When you talk to the Bank for example we run the numbers to ensure you have enough money to cover downpayments, closing costs, renovation/repair money etc. 

My question is once I have a deal signed for an apartment with seller carrying back down payment I need a partner/guarantor which would help qualify for bank loan with their income and cover closing costs. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

But they know they need adequate reserves to sustain them if/when there is a lawsuit or eviction to cover lost rent, repairs, etc.

Hi Petya,The key question is whether the rental income from this property will cover your monthly expenses, including the mortgage, taxes, insurance, and any potential maintenance.

Speaking with other agents and friends in those markets, they're seeing investment properties going for far above appraisal value and buyers are having to bring enough cash to the table to cover the difference if they really want it.