The brokers says she does not want to release Funds to seller before work has been made and paid for by the insurance.

Does anyone know of any insurance brokers or PMs that specialize in MFH in the Phoenix, AZ area?

I loves in a few during my undergrad years, it was nothing to have 250+ people in a half double 2 or 3 times per week for a little party, that’s just the norm in Stroudsburg.Parents sign the lease, renters insurance required, monthly checking, 1st, last and security.

well your description of the situation is not complete.. do you know its landlocked.. somehow if there is a home there I suspect it is not.. but it does happen I am in a landlocked case right now been two years fighting it thankfully I have title insurance and they are paying the lawyers.. first thing you do is not rely on your own due diligence if your not a surveyor or familiar with maps etc.you do one thing first .. you order a title report.. you may have to pay for it.. say 200 to 250.. your probably in a title abstract state. ( not sure but most of the NE is)  the title company hires an abstractor to do the court house work they will then write you a title commitment.. if your TRULY landlocked there will be an exception IE they wont insure access.. if this is missing then you ask them to clearly denote on the plat map where the legal access is.. you then take that map and see if it works on the ground.. 

Like I am avoiding condo prop for big mgmt fees and costly insurance.

. $5000Total investment: $30,480Mortgage payment: $530/month (Conventional 30yr at 4.6%)Annual rental income: $21,000Annual Expenses:  Property tax  $1200 (verified through property appraiser website)Insurance $1,200 (best guess)Prop man.$1,680 (8% of rent)Mortgage $6,360Calculations:NOI = Income (minus vacancy)- Expenses (Prop tax, insur, and Prop mgt)         = 21,000- 4,080          = $16,920Cash Flow = NOI - Debt service (mortgage)                  = 16,920 - 6,360                  = $10,560ROI = Cash flow/ Investment basis       = $10,560/ $30,480       = 34.6%Cap rate = NOI/ Purchase price                = 16,920 / 129,900                = 13.0% Cash on cash = ???

In Q2, due to occupancy levels, annual insurance premiums, annual property taxes, there was no cash flow above operating expenses and 8% is accumulating and will (hopefully) pay out in Q3 next month.

Besides the up front cost of the offered purchase price, title insurance, the tax bill, and annual property taxes, what other potentials costs should I be aware of (also mention any negatives to be aware of).Thanks in advance.

You have to do an analysis of what the cash flow is taking into account - mortgage loan and rate, insurance, taxes (High in some parts of Texas) Vacancy, repairs, cost of processing applications, showing, writing up leases or paying property management to do it.   

You will still have to hustle to acquire tenants, get them to pay rents consistently, then out of those profits, you still have to deduct vacancy factors, maintenance, management, taxes, insurance all of these items will affect that 10% hypothetical return.