Quote from @Max Pergament: Quote from @Matthew Irish-Jones:Licensed and insured to manage third-party properties. 

Right now we're inquiring with our insurance provider to validate proper coverage, checking with our rental license if it covers uses like this, and working through what a lease would look like. 

@Albert Gallucci as many have pointed out, in the commercial space of 100+ apartment buildings and offices, property classes have some pretty decent industry standards.We started applying these to 1-4 unit properties around 10 years ago, which you can verify on our blogs, because we saw too many newbie investors not properly taking into account things like, neighborhood status, tenant pool, property condition, etc.Unfortunately, there's no industry standard for this, but you can use some basic logic to think your way through your own Classifications.

When I first started out, I was insuring everything with USAA.

Just my $0.02 working in the industry.

It may require different insurance too..

Even at that price point, you may struggle to find a tenant, potentially leaving the property vacant for months.Here’s an example of a deal I’m currently working on:Purchase Price: $215,000Rehab Costs: ~$250,000ARV: ~$615,000Potential Rent: $3,600/monthUsing a $615,000 ARV and 75% LTV on the cash out refinance, with taxes and insurance, my monthly payment would be $4,267 using an 8.5% rate.

Instead, an umbrella insurance policy may be a more cost-effective alternative for now.

The industry is mature and margins have properly compressed.

Hell, i've seen attorneys volley contracts back and fourth with each other for months on end arguing things like the meaning of the word "the" in "the contract".....All while racking up those $500/hour billable hours of course.Case and point, I won't change your outlook on the industry.