Tenants save money when using a shared meter, so there's plenty of room for error when calculating how to distribute the charges.

Why not buy it with private money, borrow enough for the purchase/repairs/carrying costs, and then refinance once the repairs are done?

If they had taken option 1 would they have received more money? 

It depends if you have a lien on title already (a mortgage or hard money loan), but I would either do this as a hard money refinance or a DSCR cash-out refinance to pay for the reno. 

@Simone Montague-Jackson agree with @Charles Carillo and @Jordan Moorhead, that they aren't what the marketing hype claims.Insurance companies are in business to make money, which requires them to have a hard stance on claims and incentivizes them to deny as many claims as possible.In our opinion and 24 years of observations, it worse with warranty insurance products!

It's a sad way to make money IME.

AVR was good and we pulled 90% of our money out at refi time.

I spent so much money trying to bring that place together that I am literally tens of thousands of dollars in high interest credit card debt.

You will lose peoples’ money if you do this deal.

For me it's capital, I have more leads than I have money.