So owner would have to incur an additional out of pocket expense of $14,192.13 per year, just to maintain property and hoping property appreciates in value in excess of this amount just to soften the hit.

So if the electricity bills on a per unit basis seem excessively high, chances are that the occupancy rate is higher than the seller is reporting.

I have never been burned on money or excessive destruction(knock on wood). 

My approach was/is as follows:Buy solid properties in good areas.I would put as much cash down as needed to ensure a positive cash flow.I wanted to buy the property and then have it pay for itself no matter what.That means having a healthy cash flow "on paper" so that when Murphy shows up, I don't have to panic and come out of pocket for expenses.If some cases, this meant 30% down in others it was 50% down.I know that's not sexy, it is not some slick house hack.But it is solid, time tested and proven.In doing so, I never had to worry about the property.I made the investment put enough cash down to provide a solid excess to pay for the unexpected.And then I let the market, time, mortgage paydown, and inflation do its thing.

The policy may have to be placed in the Excess Market if you just choose to insure the Liability. 

This account could be a great landing spot for any excess cash to grow in the meantime while you ponder your future goals.

My total income including my Veterans Disability and my career is around 110k net after taxes.I am unfortunately finalizing a divorce with a 3 year old daughter, and due to the income disparity between me and my soon to be ex-wife, child support is a little on the excessive side.

Got a couple questions about the rehab portion on the HUD in a delayed financing scenario that hopefully y’all can help me understand:1) does the work have to be performed by a contractor (similar to how an FHA 203K loan works) or can you do it yourself,2) does the scope of work have to be line-itemed or is it just a bulk amount for the whole shebang,3) in the event that the sun, stars and the moon all aligned and Mercury just happens to be in retrograde and the rehab actually came in under budget (say, $30k put on HUD for the rehab and it came in at $25k all said and done), is the excess amount returned or just what happens in that scenario?

My point was that if you intend to create massive wealth and do so with out the difficult efforts of finding 100+ individual doors, and also do so from a passive or semi passive standpoint, then multifamily would be the best choice in my opinion (or something similar like other commercial class buildings).Thanks for your comments David, I think we are the on the same page and your last comment allowed me to respond with more details.Yep agreed ... guess where I vary from most is that I have no desire for "massive wealth" as you have it defined and definitely have no desire for the risks and persistent PIA it would take to get and stay there, though I'm still fairly young and ironically I may ultimately get their by accident by re-investing my "reasonable margin" on excess passive income over time ... no matter your income ($20k/mo or $100k+/mo, passive or otherwise), if your margin over expenses is continuously zero or negative you are not wealthy nor will you ever be ... if it takes a majority of your time (your most valuable asset) to create that income and the income will stop the second your effort stops, then you equally are also not wealthy IMO.

We use outside managers to manage the property.Right now I am using an All State personal policy on the rental property with the LLC as additional insured and, in addition,  a personal umbrella policy to cover anything in excess to what is covered by the personal policy.