The PM as an independent contractor should have a general liability policy as well.

While independent (and I believe independence is crucial) I've been appointed with Penn Mutual for many years and they're excellent to work with!

I subtract that from my offer and run my numbers as:Rent (estimates from the MLS on closed rentals in the last 3-6 months; we have access).Insurance (we go to an independent broker; who happens to work for my company, so we bid everything out to dozens of insurance companies for some estimates)Taxes (we challenge them after a year of owning)Water/common chargesWe do not add PM fees as we manage all of our properties ourselves. 

How hard would it be to move a new tenant in? Depending

By going with outside tenants, you will become financially independent.

Some places that allow a small second residence on the property target those to "in-law"-like units, where an elderly relative can live independently on the property.Thank you for your post - it's an innovative concept.  

I suppose they could do a long-term lease with a purchase clause in the lease itself independent of their deaths, but again, they wouldn't get the funds until the property actually changes hands.

Read books from Bigger Pockets authors, podcasts, independent research, talking to other investors, and pounding the pavement.

Instead of having the buyers advance the funds to the developer directly, the buyers will pay into an escrow account under the control of an independent third party.

It's no surprise there is a close to 90% annual fail rate in the industry. those other folks are getting paid to learn.. agents are on their own they are independent contractors cant have it both ways. :)