Say you bought they house for $250k and are happy with the returns you are making and then the market dips and the house is now worth $200k, but the return you are getting from the rental is still stable.

In one of my units I had it and I couldn't get the property insured until it was removed and replaced. 

I have been in the insurance business (claims department) for the past 16 years and have always been interested in real estate but never had the nerve to pursue it further...I am confident today is the 1st step towards my pursuit of being a full time investor one day.  

It's an efficient system as long as you have a stable tenant base. 

While the sale was still in attorney review, the attorneys for the auction house tried to impose a contract with all kinds of odd exceptions and carve outs that they insisted the buyer accept on the title insurance. 

I believe I can ask for higher rent and deposit, but wondering if the risks are worth the added income.I'm reaching out to my insurance carrier to understand if my coverage needs to change. 

Hi @Janice Delantes,If you wanted help to see if this is a good deal, we will need more information like the monthly taxes, insurance, maintenance, vacancy, etc. 

I was wondering if others are charging "additional rent" ie having the tenant pay a portion of taxes and insurance beyond his rent payment.

If it's option 1 I would recommend looking into a multifamily in a growing or very stable market that you know very well and have access to easily if its not a market in your back yard.If it's option 2 I would recommend vetting syndicators/sponsors and seeing who is investing in assets that align with you investment goals.

My attorney says that she would recommend e & o insurance for your llc to protect your business.