Second year distributions rise to 5.27%, third year 7.27%, according to the projections.Those projections may be at risk, for many reasons: the recent huge increase in interest rates -- increasing the cost of loans and decreasing valuations, insurance costs have skyrocketed, real estate taxes are up, labor and material costs for repairs & renovations have increased, etc.On the plus side, the majority of the ODC funds were designed to be high value add projects with plans to increase operating efficiencies, add tenants and raise rents.  

If you can rent it for enough to cover the principal, interest, taxes and insurance and still put money in your pocket, plus cash flow on the property you're purchasing, that would be ideal.

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

I thought I saw it listed as a half way house or mental health housing.

Adding your property manager as an additional insured means they will be listed on your insurance policy as a named insured.

You mentioned gross rents of $3400 per month and Principle/Interest/Tax/Insurance of $2500 per month. 

Out of my 32 properties, I’ve seen insurance rates drop by up to 40% on renewals, and property tax increases are finally slowing down compared to the crazy jumps we saw over the last five years.

On insurance side of things, there is a lot of variables.

I have home owners insurance should i buy another landlords policy as well?

I understand that I need to account for taxes, insurance, and other costs—Should I go with a LML and then do a refi later on?