Hi Everyone,My name is Cristian Sipa and I'm a partner in an Insurance Agency based out of Anaheim, CA. 

Always do the math analysis and try to look at your prospective properties before you make an offer or at least have a clause that will protect you for some time (usually about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much.Right after you close on an improved property get an insurance policy that will protect you if there is a loss.  

What type of insurance should I carry?

Id like to get title insurance on it so that i can sell the property in the future.

Id like to get title insurance on it so that i can sell the property in the future.

Thank you Matt for the nice write up.I'm available in the Cleveland market to take on more clients.I come to the table with all of my Insurance info, BBB info, references, ect.Drop me a message anytime.Neal MahoneyCloverleaf Drywall and Construction LLC

An all cash, no loan transaction).For this reason, I calculate both cash on cash vs. total yearly return on my out of pocket money (which includes the down payment).Also note that usually you pay the first month of the mortgage in addition to the down payment, plus the whole of the insurance and (some) taxes at closing.

Rental Monthly Income $4,800.00 (8 rooms x 600) ------- 4800 x 12 = $57,600.00 Monthly Gross Operation Expenses Mortgage950.00 Taxes191.00 Insurance 166.00 Maintenance Housekeeping 216.00 Landscaping 60.00 Repairs 10% - 480.00 Operational Electrical 350.00 Water 150.00 Cable/Internet 150.00 Reserves 10% - 480.00 Total - $3,193.00 Annual Gross Operation Expenses Mortgage11,400.00 Taxes2,292.00 Insurance 1,992.00 Maintenance Housekeeping 2592.00 Landscaping 720.00 Repairs 10% - 5,760.00 Operational Electrical 4,200.00 Water 1,800.00 Cable/Internet 1,800.00 Reserves 10% - 5,760.00 Total - $38,316.00 57,600.00-38,316.00______________NOI $19,284.00 19284.00/46,000.00 (down payment) = 41% Cash on Cash Return (CCR)

Their current payment with mortgage insurance is about $700.

Higher monthly costs via higher insurance, taxes, etc?