If they’re underfunded, you could get hit with special assessments.Not sure about the exact contract with the tenants, but I assume if there is any additional assessment, it would be tenants’ responsibility.Since you want to stay local and focus on cash flow, commercial makes sense, but have you considered industrial or flex space? 

In addition, we pull our own comps and use Lightning Docs to generate our loan documents.

You don’t get to just expense the additional real expenses.

Regarding insurance adding additional umbrella insurance is great idea. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

At the end of the day; you need more money to do something like this.MAX LTV on new builds is 80% LTC, Meaning if the build is $550,000 and Land is XAdd ($550,000 + x ) * .8 = LOAN AMOUNTYou would need to come in with MINIMUM 20% of the cost in addition to closing costs and reserves, $80,000 is not going to cut it for this project.

I intend on sending the tenant a bill for the exact repair cost as "additional rent" (per the lease) instead of evicting in the winter and deducting from the security deposit.

Despite no additional renovations being necessary, our efficient strategy and swift turnaround led to a same-day sale at $225,000.

In addition, you want a separate bank account for the rental property to separate it from your personal accounts.

I do not know how they are handling new customers verse the Midland existing customers.Regarding the customer service it seems the people I dealt with are still employed and only my "personal rep" as it were, was promoted and another took her place.