Typically, you can charge a premium for shorter leases since the risk and frequency of turnover is higher.

While you will have to pay the mortgage insurance premium every month, it goes away after 20% LTV on conventional, where it stays permanently on an FHA until you refinance.

Yes, that increased the value significantly and drops the insurance premium.

I have been paying insurance premium for 3 years now and the deductible is 3%.

Not only could your premium go up but if you decide to sell the property with a claim recorded, it will cost more for the buyer to insure it. 

You can clearly charge a premium based on all the amenities, but your potential guests will be comparing your place to the other places available so you have to consider those alternatives.

Similar priced properties can be found at a $100,000 premium traveling 15-20 minutes South on the bottom side of Cape Coral, so it's very reasonable to believe that these new construction properties will reach those levels in the not so distant future

The Numbers: Asking price of $330K and ultimate contract price of $320K.Bringing rents up to $1,500/mo and updating (over time) the property ($25K estimated), and assuming 10% vacancy reserve, 5% capex reserve, 7.5% other maintenance expenses, 10% property mgmt. fee, and $1,920 annual insurance premium, resulted in proforma annual NOI of ~$18K or ~$500/mo cash flow after debt service, 1.50x DS, 5% COC, 5% ROI and conservatively assuming no further upside on rent and no equity appreciation - a 20yr payback (or less).Challenges: There were a few red flags that ultimately caused me to walk away from the property.One of my diligence items requested (among other items such as the standard copy of leases and rent roll) included written reps and warranties from the seller re bad debt and past dues, side agreements with the tenants, and tenant executed estoppels.

On my $1,000,000 investment, this comes to a $140,000 premium that I paid – which reduces my 7 year profit from $237,500 to $97.500 – a 9.75% profit over 7 years.

Then add ALL costs related to holding the property (utility costs, property insurance premiums, property taxes, loan payments, HOA Fees, etc.).Concessions: Concessions are what you give back to the buyer at closing.