The mortgage lender will not mandate this coverage, but will be pleased if it exists.

Remember to be kind to them and ask for guidance - you'll find they are very helpful if they like you:)Also, make sure the existing park is a good investment and can stand on it's own WITHOUT the expansion.   

@Jeremy VanDelinder I'm investing from out of state - out of country even...I'm looking to buy something in the next couple months in Round Rock but I'm also looking to partner immediately with existing rental investors who have vacant units

The other piece is the cash required for rehab, is that going to come from existing cash or be structured into the purchase/financing.What does rehab mean for you?

Inform the non-selling co-owner of  the cost of repairs that are demonstrably necessary to maintain (not to improve -but just to maintain the existing structures or to bring it up to code to the extent that you need a permit).   3. 

The existing lease remains in place until it expires or all parties agree to a change in writing.

I MIGHT go a little lower (1.7%) if I really like the property and I think it has potential to be more valuable in the future (college rental by the bedroom or add a bed room after existing tenant moves out, etc).These house don't appreciate much, but the cash flow is amazing.  

Anyway, I am looking at doing my first BRRRR and have considered two paths to getting the 'B' done with a cash offer:1)  take a HELO out of my existing rental to supplement the cash I have on hand for the full amount of purchase2)  partner with someone to supplement the cash I have on hand for the full amount of purchaseMy concern is, even though I have excellent credit, will using the HELO for the purchase hinder my being able to complete the refi on this BRRRR?

I was hesitant due to the conditions and the existing tenets.

We're in a saturated market.