Account Closed Good point on the title search.  

For that reason, she didn't even have flood insurance.

Do not try to do everything yourself.Always do the math analysis and try to look at the subject property before you make an offer or at least have a clause in the sales contract that allows you the time (usually about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that hurts   Right after you close on a deal get an insurance policy that will protect you in case of a loss.Just do what is average for the neighberhood.  

Of course, any RE investment can have a bad year, so you also need to account for the possibility that taxes, insurance, or mortgage payments may not be fully covered by rental income if you have a lot of vacancy due to repairs, low rental demand etc  - basically what is the worst case scenario cash-flow and expense wise?

Some people will say, "Take out a quality Insurance Policy and you will be protected."

I understand the importance of purchasing Title Insurance and always do, just curious if that process is something they are required to always do, are there any laws that require them to do so?

Assumptions $8,106.00 Take Home Pay Income http://www.taxformcalculator.com/tax/150000.html ($2,611.60) Student Loan 230k, 10 yr amort, 6.5% ($150.00) Minimum Monthly CC Payment I have no idea how to calculate this, so I put this number in ($648.36) Principal & Interest 140k, 30 yr amort, 3.75% ($187.50) Taxes & Insurance 1.5% of 150k house ($179.69) Car payment 10k, 5 yr amort, 3% $4,328.85 Total After Leverage   ($2,828.85) Monthly Spending Even after $1k groceries, $200 gas, $200 cable+phone?

There is no real value to having a LLC, unless you have employees, and really not necessary with adequate insurance coverage.

OK this is quite simple.your purchase price is 391k  seller pays the lien from their proceeds.. 203k gives you the 50k for rehab you move in..Are you not being represented by a competent RE broker.. this is really remedial real estate and not complicated at all.. and these things are handled daily as you would be surprised how many sellers have title that looks like a rap sheet   LOL.

They have a social mentality that you need to adapt to and can not set your standards too high while at the same time insuring they adhere to all community rules.