If the didn't do that then they have converted to LTR or MTR rentals at a steady monthly income and have the tenants take over the utilities which offsets the loss of more income.

I'd focus on deciding what you want to do (flip-high risk, but potentially high return...or large loss; short term rental-more work, but higher return than long term rental; long term rental-less work than the other two, but lower return).Once you've decided which you want to do, then focus on getting the best house to meet your goal. 

I expect greater than 10% just for the loss of residential F/f financing.at 10% difference, or even 15% difference, coop would be up there with lot splits on sophisticated value add.  

If I had known the numbers they quoted me were total garbage, I could have sold my houses much earlier and saved about $80K in losses.

I have loss GOOD TENANTS because they shared a porch with people they did not care for.  

I know you are dealing with a 3 month lease rather than a 12 month lease, but for example....Say I rent my home for $2,500 per month and have to lower my rate by $100 to find a quality tenant that is a loss of $1,200 over 12 months compared to a loss of $2,500 for each month it remains empty. 

By diversifying, but still investing in the most promising deals, you limit the possibility of a devastating loss without limiting your upside.  

The state laws (do not quote me) appear to not let these companies increase rates (or its not easy) to pick up the losses.

I appreciate it.Aside from the option to be added as 'additional insured' they have the option to purchase a  "ProtectionPlus Bundle' from Surevestor, which includes several things like protection against eviction costs, wilful damage to property, over a $1 Million third party liability protection, loss of rent protection for 25 weeks etc.This is $50/month.

I enjoy college football, video games, and lifting weights.