The Refinance Loan amount must cover your original Loan and all your cash invested. 

Hello All,I was looking through the forums and did not see any post matching the information for which I am searching--I apologize if this topic has already been covered and I just overlooked it.

Do you have enough liquid assets to cover you in case something goes wrong (like an air conditioner or a bad roof)?

'Cheap flip' guy comes through ours & notices that the roofing & knee walls had all been heavily insulated & covered in 6mil plastic.

However, I know that the lease we now have covers updated requirements like carbon monoxide detectors, which is what I meant with being in line with the PA laws. 

I was then able to form the LP with myself as general partner and him as a limited partner, and took out an umbrella policy to cover my liability. 

@Brian Eastman covered the liability side pretty well but don't forget the huge benefit that I'm a fan of by using a ROTH, all of your rental income is tax free. 

But like all insurance, its to protect against possible losses you could not afford to cover yourself. 

You can request a security deposit to cover you for such eventualities, in some states there is no maximum, in some states you have to inform the tenant/s where/how the deposit is being held.

I really want to do the right thing as I am purchasing this home for investment purpose and will like to put this in an LLC to separate it from my personal assets and be cover from a liability stand point, but can't really afford the 20 – 25% down payment.