PMI is required for deposits less than 20%.Why are you using 5% for Expense annual increase and only 2% for income? 

Hello everyone - i have a question about the feasibility of a strategy I hope to employ in the coming months to make my first real estate investment:I currently gross ~150K annually, have a 750+ credit score and have saved ~$40k that I can use to purchase an investment property.

My current policy has a rough annual premium of $1200 or so and Foremost just told me that based on their cost estimating software, my $69k property would cost $512,000 to rebuild if the replacement policy were to kick in...and my annual premium would go from $1200 to $4,348!  

73 is i was going off just the one incomes unit of $1850.Mortgage with a 10k down payment on a 30yr loan would be 750-800m the house had been rehabbed but there can be some minor adds that can be doneFlood insurance will be $2112 annually

are these numbers Annual or Monthly break down? 

Most of my clients are in position to see an average over 5 years of 9%-12% ROI on cash flow and levered IRR's as high as 30% annually (this is bank financed homes with appreciation figured in with cash flows.)Many of my clients are in other markets including, Cleveland, NW Indiana, Detroit (I know,) Memphis, and Kansas city.

Bottom line: You want the protection of the law, you probably ought to follow the law.Some Asset Protection Salesmen offer to use trusts to help you hide your foreign LLC from the state where it does business – especially if the state is California (they have insane annual fees for LLC’s).

The cash flow I predicted is much lower than what the property managers annual report reflects.

They did new installs for me, as well as have a bi-annual maintenance program, which I use for my own home and investment properties.

However you may have LLC formation costs, annual state and federal tax returns, and annual state LLC fees/annual report and I am not sure what IN charges.