The goal was to initially do a small renovation and add an additional room and bathroom to the already existing older home. 

Just buy then from existing wholesalers, let them do all the work, their markup is nothing.

I just need to know if it's a bad idea to hold onto your house if the rent will only cover mortgage or possibly be lower than your mortgage cost. 

Explore financing options, such as traditional mortgages, FHA loans, or other types of financing.

Then move forward with a restoration company or trusted contractor who can help you dry out the place starting tomorrow (or ask your existing contractor for recommendations).

If my net income (rents- expenses and mortgage) is below $0 do I still have to file in Oklahoma? 

It lets you get into real estate with minimal down, you can build equity in a property while your tenant in the other unit helps pay down the mortgage, and if done correctly reduces your monthly living expense. 

(CSPAN).Today’s Interest Rate: 6.92%(👇 .05% from this time last week, 30-yr mortgage)Mortgage interest rates have calmed down a tiny bit, after staying above 7% for most of February, although they remain volatile.

(Max vacated rents - your monthly mortgage payment) = +/- net cashflow.

So, if the things covered by the policy would cause you to start missing mortgage payments and eventually lose your property then there is a value and for a landlord who is struggling that may be true.