Cassidy Burns Keep your security deposits in a separate bank account and dont commingle with other funds, period.

For instance ugly people are not currently as a enumerated protected class, so you are perfectly within your right to tell a renter "I'm not renting to you because I don't like your face,"  "you are too fat", or "your breath stinks"  or whatever arbitrary factor you want as long as it doesn't violate a protected class or a specific law. 

"I tried and it didn't work, I got burned, it's over," say those types.  

There is still money to be made in other ways though and you just need to price in the risk well to avoid getting burned.  

I do my tracking in an excel table and I am thinking of cutting some fat off of it.  

And if they all burned down or got washed away by a flood together, that's also a separate deductible for each one.It sounds like you already have the insurance figured out, but just wanted to throw that out there if you hadn't run into it. 

Now this is based on my experience and I certainly could have done things better, but I've found that you have to start somewhere and you're likely going to get burned a few times as you figure out which contractors work and which don't.Network with other successful rehabbers in your area. 

I also now want to ensure you have the property insured since we are in contract, I'm spending money for inspections, appraisal and mortgage fees, if the place burns down, I'm out money, so show me the insurance.....og, BTW, I also want the option to go ahead with the deal if it does burn down between now and then and be entitled to any insurance proceeds.

I don't know the conditions that exist with that property, I mentioned staring with the motivations and needs of the seller, not your burning desire to own a property, can that hill even be approached at the speed you desire?

Our lesson was to finally develop a complete checklist to use, and it saved tons for us over the years especially in the due diligence phase.How did it turn into a pot of gold, well after it burned we checked the zoning and found out it had be rezoned years before to light industrial and the business behind the property needed to expand.