It might also tell you why the high vacancy.ROI looks good, but did you make sure to calculate all expenses like insurance, pest control etc?

I have 12 years of plumbing/electrical experience, and I know many facets of residential remodeling. 

She's asking for my insurance info.

Daniel Caraway I don’t know anything about the process, but I have been asked about being a 203k contractor, it is nothing really but fully insured and credible.

I know the loan process would be a lot different since it would be commercial, I wasn’t sure if that would be harder or easier, it would also change the insurance on the property.

This will insure title/permit searches are done properly and updated prior to closing.

The plumbing and roof is good the electrical has knob and tube wiring this is why I was told to gut the whole building.

Total Insurance Estimate $ 262.50 Current rent $ 800.00 $ 9,600.00 $ 10.40       $ 21.88 Less: vacancy allowance - 10% $ 40.00 $ 480.00         Net Rental Income $ 760.00 $ 9,120.00   Property Taxes 2.5264% $ 505.28 Plus: Other Income $ - $ -         Total Income $ 760.00 $ 9,120.00 $ 9.88                 EXPENSES         Property Management $ - $ -         Repairs & Maintenance $ 100.00 $ 1,200.00         HOA $ 250.00 $ 3,000.00         Advertising & Legal         Insurance $ 167.00 $ 2,004.00 $ 2.17         Total Expenses $ 517.00 $ 6,204.00 $ 6.72                 Net Operating Income (NOI) $ 243.00 $ 2,916.00                 Less Debt Service (PI) $155.06 $ 1,860.72 $ 2.02         Less Property Taxes $ 42.11 $ -                 Net Cashflow $ 45.83 $ 1,055.28                 Operating Expense Ratio 68.0% (Total Expenses/Total Income)               MORTGAGE INFO         Total Loan Amount $ 20,000         Type of Loan Seller Financed         Term (Months) 240         Interest Rate .07         Down Payment $ 2,000 10.00%         Monthly Payment (PITI) $155.06                 Purchase Price $ 75,000         Closing costs $ 3,000         Rehab $ 7,000         Total initial investment $ 85,000                 LTV 27% Loan Amount/Purchase Price         Cap Rate 4% Annual NOI/Price         Cash-on-Cash Return 146% Annual before-tax cash flow (i.e., NOI)/Down payment    

My question is how to determine the proper amount of walls-in insurance to carry. 

Two urine soaked mattresses, a destroyed couch, hopelessly soiled rugs and towels, broken plates, furniture, etc, etc.Between the damage and the lost income we’re out about $6k, not enough to file an insurance claim and make it worth the possible rate increase after the deductible.