Tenant shall provide a certificate of insurance to Landlord demonstrating that Tenant has procured the required insurance coverage, within ten (10) days after the commencement of the Term of this Lease and within ten (10) days after any renewal or change in such insurance coverage.

It would also need to state that the seller must be able to provide clear and insurable title, as having acquired the house through adverse possession may become an issue.

Option 1 - 5% down payment, living in one bedroom side, renting two bedroom sideIncome: $650 (for the 2 bed side, while I live in the one bedroom side)Expenses: Vacancy 10%: $65 Insurance- $107Water - $70Taxes - $85Trash - $35Repair - $65Capex - $158Mortgage - $390PMI - $56Total Expenses - $1031Cash Flow: $-381Out of pocket, upfront costs - $8058Cash on Cash Return – (-56.7%)Option 2 – 20% down payment, living in one side, renting two bedroom sideIncome: $650 (for the 2 bed side, while I live in the one bedroom side)Expenses: Vacancy 10%: $65Insurance- $107Water - $70Taxes - $85Trash - $35Repair - $65Capex - $158Mortgage - $330Total - $915Cashflow: $- 265Out of pocket, upfront costs - $20,036Cash on Cash Return – (-15.87%)Option 3 - 5% down payment, renting both sidesIncome: $1100Expenses: Vacancy 10%: $65 Insurance- $107Water - $70Taxes - $85Trash - $35Repair - $65Capex - $158Mortgage - $390PMI - $56Total Expenses - $1031Cash Flow: $69 Out of pocket, upfront costs - $8058Cash on Cash Return: 10.27%Option 4 – 20% down payment, renting both sides Income: $1100 Expenses: Vacancy 10%: $65Insurance- $107Water - $70Taxes - $85Trash - $35Repair - $65Capex - $158Mortgage - $330Total - $915Cashflow: $185Out of pocket, upfront costs - $20,036Cash on Cash Return: 11.08%My goal is to live in one side for a year and then move out with the first two options I look at the negative cashflow as what I would pay in "rent" to live in my own house (rent is higher than both numbers in my area).

But I would make sure you take into account all expenses (taxes, insurance, property management, repairs, CapEx, etc.) to determine monthly cash flow.  

I understand that the property will still be covered by my personal liabilty insurance, but I would like to move the other business aspects into a separate business identity.

If I pursued the second strategy, wouldn't I have to get 2 insurance policies, one while I personally own the property, and another when I change title to my LLC.

Make sure you take advantage of that VA loan. 100% financing with no monthly mortgage insurance!

Waiting to hear back on utility costs..Here are my calculations:Purchase Price=300,0000FHA: 3.5% Down=10,500Payment= $1470 (not including insurance or taxes)Taxes=$2k/12=167Insurance?

My monthly numbers are pretty good after Loan Pmt, Taxes and Insurance, I'm clearing Approx $575-$600 on Each.

This money goes back to paying off their following year’s property tax, home insurance, and some of the mortgage."