One 2 Bd apt. and two houses, 5 bed's each.Financing Approach:80% Bank20% 10% down payment10% seller financing - terms to be negotiatedAnnual Financials:-5% vacancy (the market is emerging and vacancy is very low - we know this because we own a 4-unit in the same area, purchased from the same seller)-Rent roll: $55,800 - can be pushed up by $4,800 conservatively after rehabbing-Property Taxes: $4,277 -Insurance: $1,619-Maintenance / Capex: $11,160 (projected - 20% of rents)-Water / Sewer / Utilities: $6,200-Property Management: $3,600 In summary:At purchase:-$55,800 gross income-$21,903 total expensesPro-forma:-$60,600 gross income-$22,529 total expenses We want to get your thoughts on this deal.

Nope, as a landlord, I want to choose who lives in my place and hold all the cards.And if I wanted to share the cards with someone it would be a PM with a business and insurance, not a person wanting to make a profit by raising the rent above market rate. 

But home insurance is very expensive in this state.

Standard protocol is for lenders to dream up what stuff they want in loan docs and load it up.

What kind of insurance should I get?

This is standard, and as an agent you should be aware of that.

Have you folks checked with your insurance company ? 

Also, you'll need to consider the property taxes and the home insurance payments.

A real estate agent can also review to let you know what is customary in your area- IE who pays for title insurance, escrow fees, etc. 

If you combine them into a commercial property, the lending rules change and financing becomes more complicated and more expensive.3) the economies of scale are the same for 3 duplexes or a 6-unit parcel.4) insurance is likely less expensive on 3 duplexes5) a valuation based on NOI may or may not be greater than 3 residential buildings.