You're correct in that this decision is completely up to you, but when it comes to umbrella coverage, I tell investors to think about these main items below when making their decision.#1 - How litigious is the state / area you live in (Google search it if you don't know)?

Can I deduct the cost of the new items?

@Bill CrowOn re-reading the item, it seems like it’s intended to be an app fee, refundable if app not accepted and applied to security deposit if you sign a lease.

I am thinking that those items alone could cost 4,000 to 12,000 and plus there are other problems of repainting (there was a smoker that lived there) and other electrical modification I have too do.

I am thinking that those items alone could cost 4,000 to 12,000 and plus there are other problems of repainting (there was a smoker that lived there) and other electrical modification I have too do.

For example, main categories of deal flow, finance, value add, property management etc and punch list of items for each broad category?

Then you have operational items: $850/mo for a 3 bed tells me this is a bit of a lower end area.  

That being said, when we do rehab, we attempt to estimate the costs of the project for the contractor (project schedule + itemized quote) and pay those amounts along the way.

The agent says it should support the contract price but there are no similar comparables to my model that have closed in my community.   

The model works well for me at least.