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!

A refinance into an LLC avoids this risk but typically requires a commercial loan with higher rates and stricter terms.If asset protection is the main goal, umbrella insurance may suffice without disrupting financing.

The insurance side of it is tricky too because you have to also lie on your insurance paperwork.

Quote from @Jesse Yoder: What insurance works with people doing BRRRRs? 

I couldn't be more pleased.This type of investing would highly recommend for those folks who don't want to be on the phone with lenders, property managers, insurance companies, trying to upload 100 documents to the lender, etc.Recently, I sold a rental property and did a 1031 exchange.

@David Cherkowsky, the lender will take the full rental income reported on the tax return, for that property, subtract it from the total expenses, add back depreciation, property taxes, mortgage interest, home insurance, HOA(if applicable), sometimes repair expenses(must be documented), divide it by the total amount of months the property was in service for that year (THIS NUMBER IS ON YOUR TAX RETURNS, SO MAKE SURE YOUR ACCOUNTANT DOES NOT PUT 12 MONTHS), and subtracts it against your total monthly mortgage payment.

Larger lenders might bundle their loans and sell them en masse to a Wall Street hedge fund, bank, or insurance company.Those who like to label themselves as “note investors,” as you did, typically buy defaulted or non-performing notes.

On top of that you have lower taxes, insurance and a lack of HOA's.

We've never even had a tenant try to sue us over a security deposit dispute.For the last 10+ years, I have occasionally asked for just one example of an investor that was sued, lost, and the judgment exceeded their insurance coverage.