It's too bad you had to foreclose on the first buyer, what were the costs to take it from loss mit thru foreclosure?

If you are looking for forced savings of $900/mo, this may not be a bad option as you are probably paying down equity pretty quickly. 

Well if that small loan is in a bad area that can't sell, and big loan is in a great area, and the buyer got it at a steal, then it's not the case.You won't get many lending offers on low cost deals except for one company down in Philly, who doesn't mind taking over your property...

@Jonathan Taylor Smith not a bad idea, but from what I understand he does not want an entity because he doesn't want to report to the IRS every 3 months, hes using an accountant, details I'm not sure.

An umbrella policy is not a bad gap filler either.

Being conservative isn't bad thing (especially you're newer), but you want to be conservative and accurate at the same time. 

If you let it drive your decision making, it can turn out REALLY BAD.  

This may or may not be a bad thing but none the less, something you need to be aware of.

This neighborhood had suffered badly in a hailstorm about 18 months earlier which was why a lot of us had replaced our roofs.

(For a example of how bad it can get just look up Morris Invest on the forums).