AND with an additional caveat: the PROVABLE cash flow from the property must service the debt with a cushion of at least 20 -25%, so a debt service coverage ratio of 1.2 - 1.25.That being said, the 'gap' can, in some cases, be filled by seller carrying back a second lien. 

I doubt that is enough room for taxes insurance property management (would likely be $240 on its own) vacancy, etc.

State LLCs, title companies, paperwork turnaround, agent customs, local banks, insurance.... this part was a little like building relationships in a foreign culture - even words are pronounced differently here.

Info: 20 units for $1.45MIncome: $17k/month :2 x 10 unit buildings (tenant pays electric) 4 x 2bed/1bath @ $900-$950 6 x 1bed/1bath @$700-$750 4 x laundry units Cap Rate 8.3Expenses: Property Tax $35,231.50 Water $9,450 Insurance $5,000 Scavenger $1,906 Fuel $5,954 Electric $1,247 Other $4,687

What does your insurance provider say?

Here's an example of what I'm talking about:Purchase price: $10,000Rehab (everything new): $40,000Total "all in": $50,000 (fully financed, 15 year note, 5%)Rent: $650/month.If I apply my normal formulas to it....10% maintenance (-$65)10% management (-$65)Taxes and Insurance (-$70)5% CapEx (-$35)NOI: $415Less debt service (-$395)Profit: $20/month.We haven't factored in vacancy.These are real numbers I'm getting from some investors in my market.

The only SAFE way for you personally, is to get an umbrella insurance policy. 

I’m looking into a 6 family in NJ that is on the market for 550k...the gross annual rents are $83,400...taxes are $14,489...insurance is $2,600...utilities about $2,000...repairs and maintenance about $5,000.

Insurance covers that , but there goes 2 grand in deductibles . 

have a borrower who doesn't have insurance and is way behind on payments.