This is a much bigger problem than the pipes or the water.

Apparently Bigger Pockets doesn't let me put "ZERO" for Cash Invested...

The owner/company on title owes me additional money so I may need to use it for leverage to collect on the bigger amount. 

@Andy JohnsonWelcome to Bigger Pockets.

Hi All,I just discovered Bigger Pockets and it was like the AHA!

@Steve Vaughan  also very much depends on where in the US it is.. and what your tenant base is..some tenant bases around the country are peach's and cream and not tough on property and pay on time.and rarely does  a unit go vacant one moves out 3 to 5 days to clean and turn it another moves in.in other parts of the country tenants move a ton.. are tougher on the homes.. bigger credit risks IE don't pay and it can take more money to turn them over  and longer time finding new tenant.. so it depends.. but 50% is a good rule of thumb if your having to hire it all out that's for sure. 

I've been listening to bigger pockets podcast and read many of the forum.

If there is a loss and the company finds out that they did not cancel the policy based on you givint them a fraudulent lease it could give them an out to deny the claim. 

This is sort of a rough draft of my plans, I would either like to get a multi-family (nothing bigger than a quadplex) or single family 3beds at least and house hack them for cash flow. 

Bigger down payment, less risk for your client.