In Canada all you need is adequate insurance coverage anything more is just for show, unnecessary and costly.Even in the US for small investors it is a misconception that it actually adds any value or protection.

We have 3 now and I really don't understand the mechanics of owning more than the limit imposed by lenders.Any advice will be appreciated.Thanks in advance,Cheryl and Jack

You can still accrue them for future use (and I am not a CPA, so I may not be getting this 100% correct), but there are limitations that the tax law imposes.  

Its a lot of unnecessary upfront costs that will be better used for marketing and building your team.      

Him not following the swimming pool guidelines alone and causing you un necessary repair costs should be grounds to evict him, but again depends on what your lease saids are possible consequences and your state laws are. 

@Patrick Philip,Well, banks are "flush with cash" these days, but no, they do not have unlimited funds.Also, when banks lend, they impose certain restrictions on the loans, the borrower, the collateral, the terms of the loan, etc. so the note can be sold in the secondary market or be insured by government-sponsored agencies like Fannie Mae, Freddie Mac, etc.Private lenders ("OPM") typically don't write loans to sell them, and typically are interested in the deal rather than the borrower's details.Using OPM down usually means putting some kind of partnership, joint venture, etc. together so the source of the down payment is less of an issue or a non-issue to  the lender(s).Dunno if that helps...

@Brian Mathews I never plan to get married, I find to be unnecessary and very risky.

So it seems unnecessary to put $18k in escrow for the seller, what's he going to do with that money?

I'm not sure what to do here.Why isn't your property manager telling you to impose late fees or start evicting?

Like I said, unnecessary and not clear, my apologies.