Shop around for quotes and I always recommend an independent agent.Dwelling fire policies are similar to homeowner's policies in most aspects except that they do not cover (much) personal property - for this your tenant should get renter's insurance and I usually recommend writing that in the lease.Also, make sure you have a minimum of 300,000 liability and an umbrella policy is also a great idea.If the house will be vacant for a while you will be looking at a much more expensive and less inclusive policy.

I recommend that not only do they get every property inspected, but also get two or three repair/make ready bids on each property, at least a desk-top appraisal by an independent appraiser for the ARV (don't go just on what I say, pay the $100 to the appraiser to get another professional opinion on that ARV).

However, when dealing with this yourself, the tradeoffs are tracking at the front end (who sent/deposited what/when, method of payment) or the back-end (accounting/reconciliation under one account).I like the idea of sub-accounts for a cleaner audit trail and if the costs are basically 0, and I can make the payment process easier than just dropping in the mail, then I will go that route until the properties are eventually professionally managed and I can consolidate.

If the note surfaced two years later for any reason, I'd be looking at loan servicing issues.It can go further, when the mail is used in illegal transactions you'll have other issues, was money wired to any insured bank depository, where does the audit trail lead us of how illegal business was conducted?

For investors, the most important thing is to do independent due diligence.

@Dan Holden Is that your IRS has come to audit you face?

A compliance management system includes:A qualified and competent compliance officerA qualified and competent SARs officer (SARs officers are subject to felony imprisonment if they fail to follow the law.)Written policy and procedure manuals for each area of compliance that addresses the requirement and how the entity (or individual) plans on achieving complianceA documented training program for all employees and owners to assure they understand their responsibilities and what they are required to do to assure complianceA documented audit of compliance systems at least annually.All of these apply to "rent-to-own", "lease-to-own", and " lease-option" schemes, even if your state does not require a lending license (most do) or a MLO to so engage.

It's an audit issue. :)

I would like to know if I can get an independent appraisal for the ARV from a professional.

I have a vast knowledge within the insurance industry, as I was in claims for many years; worked in regulatory compliance, and even managed in collections of premium audits in a Finance division, so I pretty much have a 360 degree viewpoint of the insurance industry.