Additionally, there’s always a risk that any pet-related damages could be hidden under furniture or otherwise concealed, potentially leaving us to cover the costs if the security deposit is fully depleted by other expenses (e.g., damages or unpaid rent).

The primary requirement is that the expected rent would cover the mortgage on the home - and that expected rent is typically determined by a combination of the appraiser and some service like airdna (a site which determines fair market rent).

Any recommendations for Umbrella insurance providers for each partner to cover any liability?

More than enough to cover the check written on the undisclosed transaction account.

If you’re considering leveraging hard money lending (HML) for this flip, it could be a strong alternative to traditional financing—especially since HML is quicker to secure and designed for investors aiming to flip properties fast.With HML, you’re typically looking at covering a significant portion of both purchase price and rehab costs, which keeps more of your cash free for other expenses or emergencies.

It may well form part of the bank valuation in terms of square foot, and it may be covered in the habitation license (the habitation license would cover house + annex), but it will be treated differently and need to be closed off for rental.

I THINK you could probably just expense your deductible if insurance didn’t cover 100%.

We agreed but only after they covered cleaning costs and left the property in move-in-ready condition.

I would recommend finding a way to continue to practice in some capacity, at the very least to cover living expenses.

Switching the utilities into their name without safeguards in place—knowing the tenant might act out—seems like a misstep on their part.While it’s true you’ll ultimately have to cover the cost, it doesn’t feel entirely fair for you to shoulder the consequence of their decision.