@Quan Pham have you investigated at all the potential increases in property taxes and home insurance (need to have landlord policy) and included them in your cashflow calcluations?

Quote from @Peter Walther: I think you'll find most, if not all title insurers, will require the DIL to be dated and executed subsequent to default in order to insure. 

It's near impossible to cash flow when most homes are selling for above $750K, Taxes and Insurance added in the PITI payment is higher than the rents.You can buy a Duplex 2 unit for example in either FL, IN, or OH and not pay more than $200K the rents are typically $1200-$1500 a door.

. $418,000 @ 3.125% on a 30 year fixed is $1,790.61 - what is the remaining $1,171 - taxes and Insurance?

During the escrow/title process, you are finalizing loan documents, reviewing title documents (HOA disclosures if applicable, title reports, etc), obtaining homeowner's insurance, and preparing to wire your funds to title. 

So, for a $60k loan, you'll likely need $12k-$15k for a downpayment, $8k-$12k for closing costs (prepaid insurance and taxes, lender fees, attorney fees, points, prepaid interest, transfer taxes, etc), and then another couple thousand for reserves and whatever else.

Third party servicing company for $35/mo handle taxes, insurance, escrow, tax forms, statements etc.

You can gauge this risk by checking state average homeowners insurance rates.Few people live in cities that meet all the above requirements.

If you have checkbook control you’ll have a bank account with a bank that has FDIC insurance up to $250k per account.  

It might have been bound but many insurance companies have put those new policies on hold if the purchase has not happened due to the disaster and letting the mortgagee(lender) know that the policy is on hold.