The borrower and the security (the asset and docs associated with it).As a lender, you want to ensure the borrower has a performance history, can show skin in the game (some of their own capital placed into the investment), and has experience in performing on the particular investment.For the asset, you need to make sure your a LTV (loan to value) does not exceed a set amount you choose to give you “cushion” in the event the deal goes sideways and you need to take the property back.Your loan docs are also important and should include all the things you need to protect your investment such as a deed of trust (or mortgage in mortgage states), promissory note, balloon rider if the loan is not a fully amortized loan, personal guarantee rider (which is only worth something if the borrower has personal assets to go after), etc.For the asset itself, you need to know the strategy (buy and hold or fix and flip) verify the condition and amount of repairs, know the current market value and future market value after repairs, and have a plan in the event you need to take the asset to recoup your investment.

I would like to know if there’s any type of recommendations I should go with In terms of choosing property insurance and what exactly should it cover?

@Mat O'Grady Like you suggested, I will weigh the options and choose the one I think is best.

Now, as to your other question as far as agents, here is my subjective opinion as an agent:  Make sure you choose an agent that is also an investor (whether house-hacking or owns pure investment properties). 

Type of tenant also more limited to choose from and location.If your 1031 proceeds each time are 1 million or more then as an example you could look at properties in the 3 million range versus 2 million which can make a big difference as to what is available for location,cap rates, and tenant type.

@Avery Carl Actually turnovernnb does have cleaners to choose from that’s how they’re TRYING to make money although I’ve found its only use is the scheduling aspect.

Are the buyers entitled to receive their earnest money back if they are the ones who choose to cancel the sale?

You want to be sure the lender you choose has successfully navigated them before.Can help you strategize the lending piece for this purchase AND purchases in the futureIs an investor themselvesIf you’d like a recommendation for a lender DM me.

My net is a bit large right now, I will work on choosing a neighborhood or two to focus on.

But we choose them because they offer 90% financing.