I'm looking at the application now and it definitely is insurance coverage for the property.

It's a fairly comprehensive project for a first timer, but if i have to make it simpler , I could still walk away doubling my initial investment.I'll be reading the forums extensively but I might have a couple of questions I need to ask myself.

Before renting to ANYONE get a lease that protects you AND do a comprehensive background search.  

Why they think it's ok for me to turn over the profit from my first couple of deals to them is beyond my comprehension.)There's an immediate tip-off about their sole purpose when you fill out the application.

Is there a specific coverage that is important to you?  

Increase your insurance coverage.  

I just figured the company would rather inspect the property first before insuring, but I guess the insurance companies jump the gun with coverage and then request repairs later. 

I wouldn't normally consider that part of the "50% rule" of operating expenses (which Brett is right, is good to break out, at least a few times just to see what goes into it).I would normally consider that "below the line" of NOI and include it as an extra financing expense beyond the yearly mortgage payments.If I analyze this with 5% down and a yearly PMI cost of 1% of the loan balance (a rough # I came up with just by Googling - it varies depending on down payment and credit rating), it drops to a yearly cash flow of $352, a 4% cash on cash return and a dangerous 1.03 debt service coverage ratio.I'm looking at it as:   Yearly rent-  operating expenses (50% or broken out)= net operating income- annual debt service (monthly P&I mortgage pmts x 12)- annual mortgage insurance premium= free cash flowI think the most important thing which makes this a deal or no deal is the financing - how much you're going to have to put down, how much the mortgage insurance would be, what ratios the lender is going to require.I'd recommend investigating your mortgage options before going further with this or another property.

Between postlets - now zillow rental mgr and CL, thats a lot of coverage.

(MIP, not PMI)USDA goes along the Fannie Mae guidelines, VA is irrelevant as the guarantee is the VA which builds coverage into the rate.http://www.ahahome.com/mem/resources/top10/drop_pm...https://www.fanniemae.com/content/guide/selling/b7...https://www.fanniemae.com/content/guide/selling/b7...Happy reading and learning!