She owns a retail store and I own an insurance agency.Would be willing to do out of area investing deals, but need volume in order to make the cost of a management company feasible and my $100K probably won't stretch extremely far on its own. 

Hi Memphis Investors,I have a question about Insurance in the memphis area. 

You must require that all tenants have adequate insurance coverage to protect third own homes.

@Melissa YeungThere are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

Hi All,Looking for some advice on how to shop for Insurance. 

Have you called around and received quotes from some local insurance agencies?

You might have to ask around or guess insurance costs, or you could call a insurance company and tell them you're just trying to get a basic idea for research (so they understand that you don't need a full-on quote).

Here’s how I would analyze it:Vacancy - $95.1 (one month rent) 8.34%PM - $115 (Even if you self manage) 10%CapEx - $80.5 (7%)Repairs - $92 (8%)Total = $ 382.60Total Expenses = $382.60 + $266.67 Taxes + $70 Insurance + $526.09 P&I = $1,245.36Cash Flow = $1,150 - $1,245.36 = - $95.36 (Negative Cash Flow)Also you did not include Closing costs for the Purchase and Refinance.  

The downside is restrictive guidelines, a ton of paperwork, lack of flexibility.Commercial types of financing have pros that are flexibility in guidelines and structure you can do all sorts of stuff from substitution of collateral to partial lien releases on blanket commercial mortgages to cross collateralization and many others, less documentation than conventional financing products, use of debt coverage ratio (DCR) as opposed to Debt to income (DTI) and if you compare DCR to DTI the commercial lenders go up to 80% DTI since the reverse of 1.25x DCR is .80 or 80%.There are downsides to commercial financing and that is the convenants with in the mortgage note that can allow the lender to call the note so make sure to read all the definitions for what substantiates a "default," by the lender you'll be surprised by the definitions and language at times. 

It's the removal, the insurance, the wear and tear and the cost of the snow shovel - it all adds up in the Norther states.