You can purchase this with a low-money-down FHA loan. 

Would having a highly insured property (1,000,000+ liablity) plus not being a negligent or slum landlord be sufficient and not require the use of an LLC? 

Insurance companies are always looking for MTR that are furnished like ours  never stays vacant more than a week.

Hi John,No cap on the amount of DSCR loans you can get.

However, my debt to income ratio with that home loan, and student loan doesn't look that great currently and I don’t have much for a down payment.

Don’t overlook the 10% down second home occupancy loan for financing a property like this.  

I think we are competitively priced, so most of out tenants have been renewing, but we plan to test higher rents in 2025  for our larger apartment buildings to account for the steep increase in insurance prices.There have been A LOT of new apartment buildings put up recently in the Cedar Rapids metro area, so depending on the class of tenant you have, maybe that could account for some of softening you are seeing? 

Then I refinance it with a long-term DSCR loan.

Second, there is sewer line insurance that the buyer can purchase (literally only a few dollars per month) which they can sign up for if/when the line fails, and if/when it needs replaced.  

When it was all said and done I still ended up being able to pull about 5 to 10k more out of it than I put into it.Current mortgage including taxes and insurance is $1,519 and it's currently rented for $2,546/month.Yes, you can buy a house at auction that you then flip and sell for market value.And yes, I have participated in online auctions.This reply is over a year old, but did you have the hard money lender you were using already in place before you bid?