(Government qualifications requirement)The so-called "stress test" determines the borrowers ability to qualify as follows.If  the mortgage loan is to be insured, the borrower must qualify at the higher interest rate of either:the Bank of Canada’s conventional five-year mortgage rate (presently 5.34%)the interest rate you negotiate with your lenderIf the mortgage loan is uninsured, the borrower must qualify at the higher interest rate of either:the Bank of Canada’s conventional five-year mortgage ratethe interest rate you negotiate with your lender plus 2%Regardless, interest rates are still considerably below their historic range of 7-9%.

The longer the gap in insurance coverage, the higher the future insurance premium.

Also, I have decided to enter the professional world in the insurance industry.

We don't anticipate having any emergencies with our rental properties that aren't covered by insurance and would cost more than $2500, but if we did, we'd chip in from our personal funds and cover it.

Pets only considered in properties we have already tiled and after we have been named as an also insured on bite insurance policy.Not sure by fair housing standards you can\should deviate as suggested above once they are stated. 

I got title insurance in 2 days and used a line of credit where I had the bank do a certified check to the title company. 

On top of that, what if all of a sudden you need a new roof, or windows, or a sewer line, or the irrigation system freezes, leaks and floods the basement, or a fire guts the place and your insurance only covers some of the vacancy/rebuild costs, or a flood washes it away and you didn't have flood insurance, or your tenant stops paying and their estranged lover/stiffed drug dealer breaks in and destroys the place, or any one of a myriad possible bad things happens because you have an investment that hinges upon human behavior, and therefor needs constant baby sitting, and 5 years of your glorious $500/month is wiped out in one afternoon, and the bank takes the property?

to be some upside that I am missing in my valuations:Purchase price:  495,000Units:                      16Rental Income:      8,400/moDown:                    20%Down:                    100,000Closing:                      6,400Repairs:                    16,000 (assume 1,000 per unit)TOTAL INVEST:     122,400Costs:  Debt:                  2,800.00 (6%)   Taxes:                   690.00  Insurance:            200.00  Sewer:                   800.00  Heat:                  1,200.00  Yard:                       40.00  Garbage:              300.00  Cap Exp(3%)        252.00 (Lower than I normally go)  Repairs (5%)        420.00 (300.00 per yr/unit)  Mngmnt (10%)    840.00  Vacancy(7%)        588.00  Screening              40.00 (tenant screening)TOTAL COST:     7,600.00 (rounded)Monthly CF:          800.00 (yikes...…...50.00 per unit!!)

You may have trouble getting insurance if the property has knob and tube.Plumbing is also important.

Management is impossible to select until you have picked and vetted a firm- while it is an operating expense, you're likely going to pay from GOI...so assume closer to 12% NOIYour vacancy is pretty low, but it's all relative here...I would at least set aside 1-2 months gross rent for an unexpected turnoverIf you can insure a 4-unit property for $150/mo. you have an awesome agentAssuming 50% of your income will go to OpEX is pointless.