Your insurance is going to be highly variable and I wouldn't use what an agent or the seller tells you as the cost of dwelling policies have increased substantially over the past few years due to rising new construction costs. 

There is a range of DSCR lender underwriting policies for "1st time investors" - some don't allow it, some do with no restrictions, and some in the middle (typically cut max LTV by 5% or so and restrict against anything over 4 units)Also - check out these BiggerPockets articles for a ton of info about DSCR loans:DSCR Loans: What Are They And How To Get The Best Termshttps://www.biggerpockets.com/...DSCR Loans: How To Use Pro Strategies To Save More And Make Morehttps://www.biggerpockets.com/...Multifamily DSCR Loans: A New High-Impact Loan Option For Real Estate Investors?

Most focus on rate and amount of cash to close but bad loan administration or bad loan administration policies may cause the project to be far more capital intensive if viewed beyond day one of funding.

@Yinna Wang Make sure whoever wrote the policy knows that one unit is being rented because there may be additional requirements.

They got Jared a policy that ran around $4,100 a year, which wasn’t exactly pocket change, but it felt like a workable number once he factored in the premium he could charge per night.

What they might lose sight of is that banks have underwritten these HELOCs based on the owner's US income only with a margin of safety and without taking any income from the Tulum property into consideration, which therefore represents a second margin of safety.

I have the rental properties insured with a variety of lenders and no issues with putting all of them under the umbrella policy.

Ideally, you'd want closer to $40k-$50k to feel truly comfortable and have a safety net for your first investment property.

I want to provide a safe, structured living environment for individuals transitioning out of recovery or other challenging situations.I’m new to this process and was hoping for advice on the following:How to navigate zoning laws and permits in Montgomery for this type of setup.Licensing requirements for sober living or group homes.Strategies for finding residents or partnering with local organizations.Financial and operational tips for managing this type of property.I’ve heard zoning can be tricky and want to ensure I comply with all legal and safety requirements.

Do nothing...the tenant isn't renting that area and has no right to dictate how you use it as long as it poses no security/safety risk to them.