If its structural or a life safety issue then you need to take care of this.  

My replacement cost on my insurance policy was 200K and the land cost about 30K.

I do not advise Ontario due to the extremely pro tenant policy of our Landlord Tenant Board, professional tenants and anti landlord welfare pimps.

They really are only looking for safety issues than any responsible landlord would want to have right anyways.  

I was planning on using an umbrella policy on top of all other insurance for some additional protection.

SimpleYou'll just put a First Deed of Trust or a First Mortgage (they just use different names depending what state you are in.) on the property.Also have the owner add you to the insurance policy as your lender.Be sure and charge a good amount of interest and points.I'm a Hard Money Lender.

Good luck getting a Lender to ignore FHA rules).But of course, Lenders can make up their own (non-FHA) Policies.

But I'm curious--what has been your experience with late fees, and how do you deal with your late fee policies in light of these laws?

I work a full time job so these rentals would be more of an additional income, safety fallback in case something happens to my current job, and most importantly retirement income.

And of course everyone is aware of the recent rate increases, and the likelihood of more to come. (3) China's President Xi is getting increasingly desperate to quash the outflow of capital, much of which landed in cash-only real estate purchases in North America, with a particular emphasis in California. (4) President Trump's immigration and trade policies (*whatever* they may be) appear likely to dampen foreign investment. (5) California's high earner/highly educated demographic is in negative growth; i.e., they're emigrating.Of course every part of the country faces most of these same changes and tendencies.