DSCR stands for "debt service coverage ratio" and is net operating income divided by total debt service, with total debt service being your total principal/interest payments for the year.It is a good way to look at how much margin for error you have regarding vacancy, maintenance, CapEx, etc.If you have a 30 year fixed note at sub-3% interest, I would consider taking on a more aggressive project with lots of leverage, while a commercial project backed by 7-year or 10-year note at 4.5% decrease your DSCR substantially, therefore making it more risky.

This ratio, called the Debt Service Coverage Ratio (or DSCR), indicates how much cushion exists in your two deals to ensure the lender gets paid.

Side note: I'll be increasing our umbrella insurance coverage also post-close.Cheers!

The best policy (considering price and coverage) will vary by location, construction, loss history, use of property, etc. 

Ari Hadar: Yes, but... it depends on the coverage of the MLS, and the particular market you are analyzing.

Insurance will also very on what kind of policy you decide to buy - a basic named perils "fire" policy with no replacement cost coverage that doesn't cover water leaks from a no name company that will require you to hire a lawyer if you ever need to get paid vs. an open peril policy with replacement cost coverage that includes water leaks, etc. 

If you are considering purchasing a property in a flood zone you need to shop that coverage. 

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Is there any licensing or special insurance coverage I would need?