We could use an extra set of eyes!

I know many people recommend holding each property in separate LLCs - which we may do in the future, but in the meantime, would obtaining a $1M umbrella policy cover liability on the vacant lots, as well as any extra liability on the rental home?

I am 23 year old Marine Veteran looking to earn some extra cash flow.

I am 23 year old Marine Veteran looking to earn some extra cash flow.

I have to say it's a little maddening to have to wait when you have an idea burning a hole through your brain!

Well he sent me the bill and receipts and also stated that the bathroom faucet broke and drain line need to be replaced and billed me a extra $100 for parts and labor to repair that which we NEVER discussed or if there was even an issue.

I am not looking to make millions - would be nice - but even an extra $250 -$500 a month would have me sitting pretty.Best of luck to us all on this adventure!

PROPERTY POLICY ($1,000 deductible)-Buliding:  150k-Rental income including extra expenses: 24k-Liability each occurrence: $1million-Liability General Aggregate: $2million-Personal and Advertising injury: $1million           --(I don't know what this is)-Damages to premises rented: 100k-Medical expenses: 5kI was also quoted a $1million umbrella policy.I was referred to this broker by a trusted source and I plan to shop around, but I need some advice on whether or not this is the amount of coverage to shop around.  

More insight of the current numbers (considering a 4.5% interest rate for the new loan)House 1Monthly payment(PITI+HOA): $1,700/moPotential rent: $2,300/moCashflow w/o management company and allowance for repairs(house is in great shape): $600/moHouse 2Monthly payment(PITI+HOA): $3,964/mo (if offer is accepted but I believe the case study is valid for any other house)3964-600 (cashflow)-1700(mortgage first house)----------------------$867 I have to come up extra with every month.In this particular house there is also a room with bath that could be rented for about $800/mo (efficiency, as we call it down here).

To be the sponsor I look for 50% of equity upside and I look to give out 8% preferred return.Some passive investors focus in on that extra 1 or 2% preferred return but I would care more about the sponsor running the ship and the property.Extra return sounds good on paper but 12% of nothing is nothing.