Yes, clean your credit, but also keep saving v Remember that your lender will want to see six months of PITI (principal, interests, taxes, and insurance) in your reserves in addition to your down payment.

Definitely use separate accounts, whether you have an LLC or not.Checking: receive rent, pay billsSavings: hold deposit and reserves for capex, maintenance, taxes, insurance, etc.When your checking account has more money than is necessary to pay bills, transfer the excess to the Savings account where you can build funds for a new investment.

I am running my numbers and have trouble estimating insurance since I am not sure do I need 3 separate insurance plans(HO6) or 1 to cover all?

This place is actually a homerun cash flow numbers wise.. after utilities, taxes, insurance, capex,etc..

It just creates extra paperwork.Your better option is to get good liability insurance and most importantly manage risk to avoid problems in the first place.

We are the homeowner and plan to live in one of the two units, and we have contact information of the GC's expeditor and architect (who drew the existing plan)3.

You are allowing the home owner to live in a house they already live in.

Income around $40,000 yearly Expenses $10,000 yearly (property taxes, trash, water, sewer, park license, insurance) What is price I should be looking to purchase at?

Details in MLSUnits: 6Taxes: $5874 (annual)Gross Income: $48,600 ($675 per month)Net Operating Income $38,838Total Expenses: $9762Vacancy Rate: 5%Asking Price: $449KOwner pays Trash & Water______________________________________________________________Based on the expenses I am assuming that the property management is completed by the owner and that they are including ~$4K a year in insurance.I ran the numbers in my own Deal Analyzer and I added:5% of Effective Gross Income as Maintenance Expense 10% of Effective Gross Income as Property Management ExpenseBumped the vacancy rate from 5% to 10%Insurance: $3000 (annual $500 per door)Water: $3240 ($45 per door - typical in city)Trash: $1,800 ($25 per door - complete guess)$12K for improvements ($2k per door)20 year note @ 5% with 20% down (assuming full asking price)2% Closing costs______________________________________________________________My numbers show a Cap Rate of 5.7%, cash on cash return of -5.12% and -$1,668 of annual cash flow. 

@Violet Minnella, I have not specifically used the program that you are talking about, but my experience is that they are only really good for insurance and banking and they are not nearly as competitive in those areas as they used to be.