Well then you take the $900 and multiply it by 12 to give you a year's total income and then subtract your yearly fees from that which is generally about 35%  (10%-Management, 5%-Maintenance, 5%-Vacancy, 15%- Insurance & Taxes.).

Once you claim in on your tax returns then a lender will calculate your income based on a formula that takes into consideration the amount of insurance, taxes, mortgage interest, and some other line items on your Schedule E portion of your tax returns.  

Up date one side by adding additional bed and bath (the other has already had this done and is in excellent condition)ARV: 475-500KMonthly income: $3200Monthly expenses: $2283 (mortgage, fixed and variable expenses, future assumptions) see below-monthly P & I: $1622- fixed expenses: $340/month (water/sewer, insurance, property taxes)- variable expenses: 2% vacancy ($64/month) , 5% repairs & maintenance ($160/month),  cap exp 3% (96$/month): No property management since we do this ourselves for our rentals.- future assumptions: 2% annual income growth, 5% PV growth, 2% expenses growth, 6% sale expensesBigger pockets tool sheet with above data:Cash flow: $916/monthCash on Cash ROI: 6.65%-7.57% depending on rehab costsPurchase cap rate: 7.15%I know this does not meet the 2% or 50% rule but it seems like a good investment for the area.  

Either way, if you proceed, I reckon your number one priority will be: look for bargains only!

What does the insurance policy in dollarslook like for that mixed-use situation?

Do we accept putting additional cash into our first deal or do we keep our eyes open for another deal.Original Offer:Price: 153k ($31k into the deal)Anticipated rent: $2,000k/monthOperating expenses: $9.4k / year (includes management, cap ex, vacancy, taxes, insurance, etc.)Cashflow: $4.2k / yearCash on Cash return: 13.68%The appraisal came in at 146k and they raised some very valid points on why the property was not worth 153.  

Proceed with caution but explore it till your curiosity is satisfied.

Then he proceeds to tell me he will be sending another check from his bank because that's how the prefer to pay bills!!!!

What does insurance cover (generally) related to hurricanes?

And unfortunately, those are the people who didn't have flood insurance because they didn't think they needed it.