As a GC by trade, they also provide you with one pivotal point of liability coverage as well as being contracturally obligated to meet your deadlines, quality standards, plan implementation, and inspections with the municipality.  

I'd build at least 3 units. the DSCR loans we underwrite get 1.6 debt coverage and because we build under 4 units they have so many exit strategies depending on which appraisal method goes for more. 

Converting your single-family home into a rental property involves several considerations to protect yourself and ensure smooth operations: Establish an LLC:Liability Protection: Holding the rental property in an LLC can protect your personal assets from potential lawsuits related to the property.Tax Benefits: An LLC can offer tax advantages, such as pass-through taxation, where rental income is taxed at your individual income tax rate.Insurance:Landlord Insurance: Ensures coverage for property damage, liability claims, and loss of rental income.Umbrella Policy: Provides additional liability coverage beyond your landlord insurance, offering extra protection.Deductions:Mortgage Interest and Property Taxes: Continue to deduct these expenses.Depreciation: Depreciate the cost of the property over 27.5 years, excluding the land value.Maintenance and Repairs: Deduct costs related to maintaining the property.Property Management Fees: Deduct fees paid to the property manager.Filing Taxes:Schedule E: Report rental income and expenses on Schedule E of your tax return.Separate Accounts: Maintain separate bank accounts for rental income and expenses to simplify bookkeeping.Lease Agreement:Solid Lease Terms: Ensure your lease agreement is thorough, covering rent amount, due date, late fees, maintenance responsibilities, and eviction terms.Legal Review: Have the lease agreement reviewed by a real estate attorney to ensure compliance with local laws.Tenant Screening:Background Checks: Perform credit, criminal, and eviction history checks on prospective tenants.References: Contact previous landlords and employers for references.Property Management:Regular Inspections: Schedule regular property inspections to ensure it's being maintained properly.Maintenance Fund: Set aside a reserve fund for unexpected repairs and maintenance.Moving Out of State:Communication: Maintain open communication with your property manager.

I'm hoping to begin supplementing my pay soon and eventually do this full time!

It generally covers issues like forgery, undisclosed heirs, and errors in public records.Lender Acceptance: Many lenders typically accept CLTA policies because they provide coverage for common title issues.

Coverage is very good with this method.

Make sure you check your bylaws to confirm there are no issues renting out your condo as many HOAs have put limitations and other requiremets in place.You'll also need to update your insurance coverage to a landlord policy and make sure you understand any vacancy triggers - many policies will auto-terminate if home vacant more than 30 days.Start researching rental applications and leases ASAP, so you're ready with those when you start advertising.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

Not sure if the other offers included appraisal gap coverage.

My insurance company says they exclude coverage for exotic animals and any dogs with a bite history.