My initial reaction, especially based on your desire to cash flow immediately and non confidence in the area, is to pass on this deal, but we can chat more privately. 

And it sounds like a good deal based on the 1% rule, that for every 10k in purchase price, you get 1% or 1 dollar in rent in return.

Your value based on a 16x GRM at $1200 a month in California is $230,040. 

Close to a military base.

Just want to make sure all your bases are covered! 

Couple ways to size an umbrella policy, 1 is to analyze your assets and do it based off that, but I have always preferred to do it based on what is an amount that guarantees my insurance company would want to defend me. 1 million to start is pretty popular.

During the refi step, the bank will appraise the newly renovated home based on its new value.

The money you make is tax-free if it's your primary 2 out of the last 5 years (if you rent it for a while, I believe there are some taxes, but it's prorated on time based on what I remember - not tax advice).

I have a rental property where:1) The neighbor has a fence that is aligned with a telephone pole which may be the property marker. Long before he or I owned our houses at this location, the neighbor/owner at the time ...

I currently work in the property management field under an agency based out of Coralville, Iowa.