If you go with a submetering contract there is a standard 3 year contract, but you can also get out of the contract earlier with a buy-out fee of $1,500 during year one, $1,000 during year two, and $500 during year three.   

What about contractor investors who already have General liability coverage from their contracting business, would a vacant coverage be sufficient enough?

Have a duplex property under contract looking to close.

However, when I actually had the property under contract, no information changed and all of a sudden the loan points and rate jumped substantially, with no changes in any of my or thendeal info; felt like a bait and switch. 

We have a contract on rental #6.

Suggest you review your contracts with a lawyer.

Our contract has a due diligence clause in it, so we can still back out if anything huge comes up.Current Home Info: 1970 sqft, 15 year mortgage (about 13.5 years left) at 3.375%, monthly payment of $1,241 (will go up a couple hundred due to SC taxes raising for non-primary residencies). 

I didn't read this to ensure its accuracy but it certainly looks to be from a credible source. https://www.irs.gov/pub/irs-utl/33-Real%20Estate%2...Cliff Notes:Real Estate Professional Qualification • Material participation in each specific rental • Material participation in separate Real Property Trade or business • 50% rule • 750 hours rule • 5% ownership ruleReal Estate Trade or Business Defined IRC Sec. 469(c)(7)(C) Any Real Property: • Development or redevelopment; • Construction or reconstruction; • Acquisition and/or conversion; • Rental Activity that is not a Passive Activity; • Property management; • Brokerage activities.Example 1: Laura owns 5% or more of a real estate sales office • Works full time as a broker • She owns 3 rental properties and: • She finds the tenants; • Approves tenants and leases; • Approves and oversees repairs & improvements • Net rental losses are $31,000 and her modified AGI is $160,000 before the losses • Deduct the full $31,000 in the current tax yearExample 2: John acquires old homes and contracts 3rd parties to renovate and ready for resale.

. , until you own the property, you can't have them sign a lease.Make an amendment to the contract that current owner has them sign a lease that ends at midnight, day after closing so you can put them on your own lease.

And having served as attorney for two auction companies I gave you my opinion based upon that experience.Many times I got the call you made and I simply pointed the disgruntled buyer to the clause in the contract that says "AS-IS, WHERE-IS" and poof... the matter was over.