Essentially what I took away from her explanation was, a lot of owners don’t want to fool with the county on things like this if they don’t have to, which I can understand.

If you ever read an EOB (explanation of benefit) you will see how low the insurance reimbursement fees are. 

I have gotten room by room leases to be used in this case but underwriters are not used to it so it does take letters of explanation to get them comfortable. 

Based on your explanation, it looks like I fall into category 1 since I plan on repeating this strategy at least 2-3 more times.  

Great explanation @Kevin SobiloSome other BRRRR nuances:It is easy to underestimate your rehab budget. - make sure to get bids from multiple contractors.It is easy to overestimate your ARV. - Have an agent pull recent It is easy to underestimate the rehab timeline. - whatever a contractor says, expect double lol

Thanks for the explanation. 

It depends on your tax situation, and here's a detailed explanation:  https://www.biggerpockets.com/forums/51-tax-legal-issues-con... 

I'm interested to hear Martel's explanation of the inconsistent numbers.

Ask for a breakdown of fees and an explanation why the interest rate increased.

@Bonnie Low I appreciate your response and detailed explanation.