The property is a 5 unit building with the following information: Rental income is $4,000 per month or $48,000 per year totalTaxes are $375 per month or $4,500 per year (this is higher than current but factoring in that they will increase)Estimated insurance is $200 per month or $2,400 per yearExpenses: Vacancy 8%Management 10%Other expenses Landlord pays water at $400 per month or $4,800 per year Realize this could be a cost savings in the future, but want to analyze as isGeneral maintenance (including minor repairs on property) including grass and pest control estimate at $300 per month or $3,600 per yearCapital reserves for Cap ex (appliances, windows (52 windows on building), roof, siding, etc. which I based on building a capitalization table based on useful life of items and number of units) at $460 per month or $5,520 per yearLoan: All in after down payment the loan would be for $300,000Assuming 7% interest rateAmortized over 20 yearsThus comes out to $2,325 per month or $27,900 per yearSummary Income Per Year:$48,000Property Exp.

You could potentially still live for free (your roommates pay your mortgage, taxes, insurance, expenses, etc.) and you are building equity at the same time by paying down your mortgage and you don't have to live with your parents. 

I bring years of experience flipping (started in 2011 in Sac) new construction, additions, rehab team, agents (real estate and insurance) and funding. 1 rental in EDH. 

I figured it was a good time to post here, since I had a conversation last week with yet another new investor client who got bad advice from their previous insurance agent.

@Steve K. sorry I know this thread is a couple months old, but I was wondering, in the case where a homeowner is leasing their roof to a solar company, what happens in the case of a homeowner default?

Get a Title Company attorney to tell me what it would take to get them to insure title without the buyers signature (my attorney does not know if this is possible and to try different title companies). 3. file a lawsuit and take them to court (which will take the cost above the value of the home.

How much did your homeowners insurance increase when you added short term rental to your policy?

You generally are buying with clear title and title insurance, as per the auction terms.

As for S-Corp or LLC just remember that you a group of investors and you need to protect the individuals and I personally believe that an LLC with good insurance on everything separately is your best idea.

@Nicholas Makhonuk These home owners receive a bunch of mail and numerous calls on a weekly basis.