But if you are getting a more "normal" policy (unit is occupied or will be within a few days) then the above quoted statement is true.

I was expecting this one to be like a more conventional deal.

Separately my husband and I carry an "umbrella policy", aside from our primary home and auto insurance.So now that we're adding a rental house to the mix, I'm wondering what our protection strategy should be.I will talk to a lawyer as well (though I'm not certain if I should talk to one locally in WA where I am, or in TN where the rental house is - I suspect WA since that is where the majority of our assets is)..Anyway, I'm thinking the best option for us right now is to increase our umbrella policy, if needed (and of course to obtain adequate landlord insurance on the rental home).

Yes a nationwide HML will usually be much higher as they are building the risk out.The local HML has a more intimate knowledge of the area,the laws,etc. so can cover risk and chance of default better on the loan.10 points is outrageous.I looked at rehabbing but I am not that hot on it because of the long hold times involved to an end buyer and all the residential BS red tape the government has enacted.The points aren't as bad if the interest rate is really low.If both are high there are too many HML's to pay those ridiculous rates.

That said, I would be happy to offer you my opinions once I have a more clear picture of your situation.

The 2% rule is only intended to be applied for rents around $500 per month in order to get a quick evalaution on whether to do a more detailed analysis on the property.

A few thoughts, but a more specific question will generate more answers.Bird dogs: I would consider a bird dog someone who brings you a lead for a prospective property.

I have coached many new investors on this and it is very helpful to go on some presentations with a more seasoned investor to see how they work with sellers.

A more effective solution would be for us to slowly bulldoze the big banks so that people can put their money with small regionals.

I have come across several great deals, I come across them often, but lack the ability of knowing how to close the deal without being taken by a more experienced investor.