With this same property and an estimated rent at $1000 a month here are the numbers:Mortgage $485 (75k at 4.75 for 20 year amortization)Taxes $100 (This is a guess because I have no idea what they would be in your properties area)Insurance $50 (This is also a guess but I am basing it off of my own rentals)Property management at 10% $100 (This depends on if you will be managing it yourself or not)Capital expenses savings for repairs 10% $100Vacancy 10% $100Monthly cash flow = $65 (6% APR rate of return on your 13k left in the property).Now there are several variables in this example.  

Do I need to check with the insurance company?

What if the paperwork doesn't check out and you want out but you have no inspection contingency what options do you have then - can there be some kind of 'document review period contingency'?

FORECLOSURE: A seven year waiting period is required, and is measured from the completion date of the foreclosure.A three year waiting period is permitted if extenuating circumstances [EC: non recurring events that are beyond control that result in a sudden, significant and prolonged reduction in income or a catastrophic increase in financial obligations]  can be documented and the lesser LTV of 90% or the standard product guidelines.

Even with an "unsecured" line of credit, there is generally language in the documentation that requires a personal guarantee.

They will check your current living situation through the underwriting process before you close....meaning, if you own a property now, if you plan on selling it or renting it (since you will be moving out to occupy your new property) they will ask for those documentation items.  

How much is the typical home insurance with standard liabilities cost for multi-family units around Boston areas? 

But went about it this way because I am closing on other properties in my own name right now so we used just the father's financials to qualify for this particular one, and the mortgage market does not allow lending directly to an LLC anymore.Simply put, our goal for tax reporting is to divide all rental income for this one property equally in to thirds, and to do the same for all expenses (mortgage interest, taxes, insurance, repairs, etc.).

Now that I have two properties, I'll be getting an Umbrella Insurance policy which should be able to cover me for 1M+ in liabilities.  

Insurance Loss proceeds can be some of the hardest to get reimbursed from your lender.