(You’re protecting equity/your net worth, if you don’t have anything you don’t need an umbrella.)I used USLI for a long time but they changed their standards a couple years ago and wouldn’t offer more than $1-2m if any property had a pool.

I do not want to set a standard that rent will remain the same forever if this ends up being a tenant that stays for years.

Be honest and follow the correct steps and you won't have any problems, unless the UW simply doesn't like it.Overall, the process is pretty standard, but if you don't follow the rules, you will have a heck of a time getting the conventional financing.Cheers!

If you had to come out of pocket for a water heater for $1,000 in a given month, or a $300 plumbing call, or an AC call, can you comfortably do that type of thing with your finances?  

One thing that got me was the age of the water heaters.

This is just me, but I just stick to my property standard and fix or replace based on my property standard, regardless of the owner's financial condition.

These properties are currently being rented for a great amount with great cash flow.Most of the time, these properties are not in the worst condition, but they are not new either (I think about $10-20K in repairs needed) or even properties that have great tenants paying great rent in them.Now, if I analyze the MAO with the standard calculation (ARV * 0.7 - repairs - fee), it won't make sense for the seller, and he won't sell it (found out the hard way haha).What do you guys do in that situation?

Exactly DonI have owned 3 parks over the years and owning the homes is really tough.. the parts are hard to find and not standard..

@John McKee, to be certain: IRR is a standard financial metric that is generally universally utilized.  

We live in the Richmond Virginia area and we are seeking a lender that will approve sub standard  credit.