During this initial research I read several articles which state that coverage in high risk states has significantly declined since 2015 due to policy rate / deductible increases such as what I am outlining above.

But to date, I've just set my rents at a rate that accounts for me having to pay the water bill - and informed the residents that each year I'll increase the rent based upon my expenses (including water), so keeping the bill down helps me to help them.But one problem this could cause is if increasing the rent to cover the water bill then places your rent above the market rate.

As a parent, and landlord, and previous renter I will always choose to live or rent in the area with the higher rated schools - maybe they aren’t Blue Ribbon Schools, but a C+ rated Elementary School > F Elementary School.

@Juan PerezCongratulations on paying off your first home and transitioning it into an investment property!

If you've owned for at least that, you're good.If you do a rate/term refinance, where just the hard money balance is paid off, rates will be much better.

You still need some money to cover part of the rehab until you get your first draw, and if you're a brand new investor you might not qualify for 100% LTC on your first deal, but if you can partner with someone with experience on their track record or can prove significant past contractor experience then we might go that high on your first deal. 

Obviously, this is what you hoped to avoid in the first place by keeping the troublemaker.

The capital you'll need to accumulate depends on the appreciation rate in your chosen investment city.

Hey Aaron, have you considered a commercial mortgage from a local bank like First National or Bangor Savings Bank? 

Routine maintenance and unforseen maintenance costs; insurance rates (they are increasing all over), property taxes and vacancy rate.