Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Unless you are finding off-market opportunities direct to seller, I can't imagine the deals working on BRRRR.I completely agree that the current market makes BRRRR a much tougher strategy to execute, especially with higher interest rates and tighter margins.

(Your income will be $10k higher if you self manage, but as I mentioned before, you earn that $10k by acting as your own PM. 

BUT the point is...do you think you or the agent will sell it for the highest price and provide higher net proceeds to your family member? 

Yes, property taxes are higher for investors but not terrible. 

Detroit would be a solid option if you're strategy involves a little more risk for potentially higher cash flow. 

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

these investors are expecting returns far higher than 10%.  

Keep in mind a HELOC rate will be much higher because of the CLTV and risk.

You could get lucky at $6k but I'm guessing the quotes will come in at $8k or higher.