Rentals conducted as “net leases” (the lessee is responsible for all lease expenses, including taxes, insurance, rent, operating expenses, any mortgage interest/principal payments, etc.), however, generally do not qualify as a trade or business.If Non-recourse:No debt discharge income results from a foreclosure or deed-in-lieu transaction involving only nonrecourse debt.

Mid-$30k/unit  so with financing, insurance, etc CAP rate comes in around 9%.HOA has ~$30k reserves, roofs refreshed ~5 years ago. 

@Stephen Sykes I would suggest Suzy Jennings with Insurance Solutions.

The place to start is by calling your insurance company and asking them what your policy would cost.  

As far as protection, an umbrella policy can be sufficient for protection, but you'd want to talk this over with an insurance agent and probably a lawyer as well as I am neither of these things.

Insurance, tax, water, electric, garbage.$7,000 maintenance last year $5,000 of it from a roof repair.I think for this complex I will need to put down 35%, which I have saved up, but it's pretty much everything I have saved up.If I put in a 5% vacancy, and $3000 annual maintenance.

The lender wants me to insure the house for Replacement cost which is 361K...

Any difference who I use to get the title insurance? 

I have been told by several people in Atlantic city (real estate agent, home owners other investors) that in NJ at closing you only have to pay a quarter of your taxes, home owners insurance and flood insurance upfront.

Ensure you include all of the expense calculations when number crunching (property management, vacancies, maintenance, capital expenditures, property taxes, and insurance).