Thank you to @Owen Rosen for helping me with the insurance on this one.

Conventional loans with 5% still require mortgage insurance. 

Given today's market.But conservatively, at those prices ($1,100 studio, $2,100 house) they would bring in$38,400 a year. 53% of that would go to fixed expenses ($899 mortgage @ 2.15% interest, $5.8k property tax, $4k house insurance).

I just can’t imagine how everyday people spend this much money on pipe.I don’t think insurance covers any of the foundation repair, also wonder if insurance will cover any of the sewer line repair work?

I think @Brian G. and @Jaycee Greene hit it on the head: an event occurring/debt resetting.When the debt forcefully resets on some of these assets, valuations drop if the submarket cap rate has expanded and/or if the operator can not show a good t-3, t-6 etc due to economic vacancy and rising opex (insurance, r&m etc).If the operator can't inject equity to cover the difference, then trouble arises.

Should the buyer or seller pay for title insurance?

But because it is built before 1960 banks do not insure it as it is(not renovated) for earthquake so they do not grant me a loan even though my payslip is quite good 

--I closed all my tax and insurance escrow accounts, because the money is better off lowering my daily balance and interest and will pay those just in time.

My payment with insurance & taxes is $1425 a month.

Florida has some strong rental areas, but things like insurance, taxes, and property management can vary a lot depending on the city.If you ever want to compare notes or chat about market trends, happy to share what I’ve seen!