Unless your local market is thriving and not behaving like the rest of the country, this is not the very best time to subdivide and install lots of new houses.If you have a lot of new people moving in to your town, and there is no excess of inventory, then that is a different situation.Since it takes a long time in my location to get a subdivision platted and approved, the local builders are still doing their legal ground work to get separate lots.

So, if you hold Title in your name:Layer 1a:  Landlord policyLayer 1b: auto policyLayer 1c:  homeowner's policy (your primary residence)Layer 1d:  GCLLayer 2:  UmbrellaIf a LIABILITY claim were to be paid out in excess of any of hte first layer liability coverage the umbrella policy would kick in. 

A year for rental listing agreement is definitely longer than usual and excessive in North Jersey. 6 months is more standard, but 3 months is not unheard of.

Ben,The policies most used to give additional Liability are an Umbrella or Excess Liability.  

As for paying it back, the only way to do it if you are not improving the value of the property where you can refi as described above (or of course sell) is to pay back with your excess  cash flow that the property generates. 

So you could/should be making in excess of $800/mo, it just isn’t all cash, unless you do a cash out refi.

. $60k for “some roof and floor work” sounds excessive if the damages are minor.

Hello,I had to evict a tenant because of excessive noise (all the neighbors complained), having a cat and a dog in the unit which was not allowed under the terms of the lease, and for allowing her friend and her friends' 2 children to move into the unit.  

If there are any gaps or an environment with excessive water, you've got trouble coming. 

They are leaning towards buying out the 25% owner but I think it's a mistake since he's asking for an excessive amount relative to the value of the property.