If a tenant causes a claim, why should the landlord's insurance pay - possibly resulting in an increase in premium or even a cancellation of the policy?

I want to put the smallest possible down payment down with an FHA loan on a multi unit.

It's possible but the rates would be high.

Look forward to helping you in any way possible in the future. 

Here's a short treatise by a title insurer:A deed in lieu of foreclosure is a deed given by the owner of mortgaged property to the holder of the mortgage or its designee where the mortgage is in default and foreclosure is a possibility.

And then, depending on how much risk you’ve taken in choosing the investments, you can expect the possibility of losses. 

My though process in undercutting the bank by 1 % was to possibly attract qualified buyers.

I would prefer to sell the property vacant or the easiest less stressful way as possible, however I was advised that could deter investors buyers interest as the rental income is a one of my strong selling points.I am open and would appreciate any thoughts and/or suggestions from fellow agents or investors alike.Thanks

We already have a few mid-term booking requests so just as I thought, my vision of what's possible is coming to reality. 

At this point, they are doing most likely what others here didn't think was possible, and probably something they failed at.