But you can decide to take more or less risk with those variables.If you plan to grow past a certain point it will almost certainly involve commercial financing so it's not really a question of whether to use it but more of how you use the different products available. 

Try checking out typtap.com where you can get pricing on flood insurance with only a few clicks and don't even need to involve insurance agents.

(again expensive as pets and multiple people/rooms involved)  Do you ask them to file a claim on their rental insurance for meals/stay?

Living on a passive income isn't my only reason for wanting to be involved in the investment world because I've always been interested in real estate and will most likely also try my hand at being an agent at some point.

Part of my strategy for growing my rental portfolio involves having them financed and paying the mortgage back with the rental income.

Part of my strategy for growing my rental portfolio involves having them financed and paying the mortgage back with the rental income.

If you are looking to grow and get into REI in a big way, aren't afraid of a bit of risk, want to be actively involved and don't mind getting your hands dirty, I would encourage you to buy multi-families in C/D areas. 

I’ve been involved a couple of construction related suits, it’s never fun, and you’re not likely to be happy with the outcome.  

Frankly I just move on if an HOA is involved just is not worth the trouble having them get between me and my prospective tenants.

Some items to consider are accessible path of travel (gravel is not going to cut it), potential elevator, potential historical preservation involvement, and the biggest issue is if a business can garner enough clients to cover the cost and still make a living.