The 50% is rather deep a cut, especially with all the additional operational expenses not included into that 50%.

But there are many things that can be done to greatly reduce the chance.For example, many sponsors are audited which provides an additional set of eyes.

To determine price range, the first step is always figuring our how much you are pre-approved for; and that can vary significantly when you are looking at multi-unit properties because of the additional variable of rental income that can be included in qualifying.

Additionally, the study should contain 13 principal elements.WHAT ARE THE ELEMENTS INCLUDED IN A COST SEGREGATION STUDY REPORT?

Additionally, there’s always a risk that any pet-related damages could be hidden under furniture or otherwise concealed, potentially leaving us to cover the costs if the security deposit is fully depleted by other expenses (e.g., damages or unpaid rent).

Also, for flips, I like to reserve an additional 15-20% in contingency for unforeseen conditions or changes. 

So ultimately we decided to suck it up and not take on the additional equity, which ultimately required us to take more time on completing the needed rehab, however in hindsight it was a good decision, because even just among our own family there's been lots of dispute on what we want for the business plan and personal STR useage....

If you ever want to discuss strategies, share experiences, or need additional resources, feel free to reach out.

In addition, while the umbrella did not end up having to pay out, having it meant I did not stress about it at all.  

As JD said, the tenant must list the landlord as "additional interest" on the policy.