But IRS allows an IRA to be invested in anything except life insurance and collectibles.

Rock that for about 12 months and add some equity and then you could refi out to conventional so as you pay it down in the future the mortgage insurance will drop off.

Absolutely use their payment processor and insurance and don't allow cancellations.

Get replacement cost hazard insurance along with an umbrella policy of at least $1M, probably double in your area.

He is no longer responsible for insurance, maintenance, or dealing with the realities of renters. 

For those interested, a combination of mortgages with no “due on sale” clause, mortgage companies loose due diligence, and title insurers willingness to “turn a blind eye” to practices that wouldn’t pass scrutiny now, resulted in tactics like the “second mortgage crank” which not only allowed investors to purchase properties with no money out of pocket but allowed investors to actually walk away from closing with “cash in their pocket”.

Insurance is definitely an issue there, and will continue to be.

Make an insurance claim and buy all new stuff.

With the purchase, the rehab, the closing costs and the holding costs (hard money, taxes, insurance, utilities) our all in is around $200,000, but we have created $40,000 in equity.

And don’t forget about short-term rental insurance—it’s a must for direct bookings since you won’t have the platform’s protections.Lastly, make sure your house rules are super clear and easy to find.