Well the insurance will not cover the SFH anymore because it is not owner occupied.  

Where you get the money from does not matter to the seller.I believe @Luke Grogan is referring to the times when he MUST take title before reselling (in circumstances where selling property you don't own, without a License, is illegal) ie. double close!

In Canada all you need is adequate insurance coverage anything more is just for show, unnecessary and costly.Even in the US for small investors it is a misconception that it actually adds any value or protection.

I have a title attorney who I do business with that looks up mortgage records for me 

What is the monthly payment to include taxes and insurance?

So I feel 1% allows me to account for a little adjustment)Vacancy Rate = 11%Closing Costs = 2%Selling Costs = 6%Cleaning and Maintenance 0.8%Property Management = 11%Repairs = 8%CapEx = 12%Taxes = 1.2% (I tend to adjust this one frequently, but this is my default)Insurance = 0.5%Other Expenses = 0.1% (my flex money as a "just in case")Initial Renovation Costs = $500

Do not do anything unusually b rbRight after you close on improved property get an insurance policy that will protect you if there is a loss.  

Insurance is so important, ask for a copy with whomever you plan of signing with. 

Closing costs: $3515 (3.5% down on FHA)Conventional 30 year @ 3.25%Income: Current rent: Lower 2BD $800 (rented MTM but I think I might be able to get $900)                     Upper 1BD $500 (I would occupy upper)Market Gross rents: $700-1200 2BDMonthly liabilities: Mortgage (P&I): $399Utilities: $150 Vacancy: $65 (5%) CapEx: $65 (5%) Insurance: $90 Repairs: $65 (5%) Property Management: Self managedProperty taxes: $408Total expenses: $1241Monthly cash flow~ $58.64/mo (Unless I can get $900 for rent then it would be ~$145/mo)My current rent is ~$500/mo with utilities.

Also good idea is to get a verification that they have their own workmen s comp insurance, so your not stuck if they get injured on your site, you simply ask them to have their insurance guy send you a certificate of insurance made out to you, for your address your having the work preformed at.