If you are planning on adding additional assets in the near future, then go with the higher projected numbers.Keep in mind, in the event of any liability claim (at fault auto accident / someone getting hurt on one of your properties, many more situations) your underlying policy will be 1st in line, then your umbrella will kick in once the underlying policy is exhausted.

Hypothetically speaking, will a homeowners policy cover an accident from a tenant...for example if they leave the stove on and burn the place down? 

Did you know before hand that this property was stripped down to the studs before buy the at the tax sale or was this something that you bought by accident.  

Another issue, auto policies should have a business exposure, if you are conducting business and have an accident you may not be covered.Errors and Omissions coverage is a separate policy and usually covers errors, omission, implied warranties and negligence on a deal by deal basis, it's cheap if you can get it.No insurance covers intentional illegal acts, so if you choose to do a shady deal that violates law, it could be on you.An LLC offers some liability protection for those who can operate with an astute business knowledge, but there are so many ways to foul it up I'd say be insured!

Natural disasters and catastrophic damage from accidents... maintain appropriate and sufficient insurance for the properties and for your liability.

Hey @Adam Christopher I sent you a colleague request with no message on accident.

None of this happens by accident.

We stumbled around for awhile with college, etc and then I found real estate by accident.

We started by accident- bought the cheapest SFH in our area that wasn't a TOTAL rehab (just a partial)- really it was all we could afford at the time and once we got it fixed up we thought, hey we could sell this and make some money.

Born in the Philippines Island, grew up in Hawaii, and now living in the San Antonio, TX area which I claimed as the 10th Island - since it's very expensive to live in Hawaii where $719,000 is median home, I decided to bring the Hawaii culture here in SATX where $175K is the median home price.I became an accident landlord when a townhouse I cosigned when I was only 25-years old was about to foreclose on by American Savings Bank in Hawaii.