Their current payment with mortgage insurance is about $700.

Higher monthly costs via higher insurance, taxes, etc?

Through self education was able to become both a licensed insurance agent as well as Supply Chain Account Manager, each for over year.

The question I have is, does the insurance and property tax get calculated in as part of the 50% expense?

Your insurance might not cover a garage fire/explosion spreading to the attached house, and the heirs will be on you for his wrongful death.

However, it’s also a field full of potential landmine issues with fair housing.There are important things to remember when using social media to screen tenants.Start with a solid application processIf you’re not starting with a thorough rental application, a credit check, and a criminal background check, go no further.Beyond that, have a checklist of uniform criteria and standards you need each tenant to meet.

Regarding insurance: I'd see if I could get them switched to State Farm- they do not discriminate based on breed.

There are standard procedures and traps you won't be familiar with.Also, there would be absolutely no advantage to not using one, even if you didn't need one.

A standard lease signing. 

Your home owners insurance will change to landlord insurance, which may reduce your premium cost.