I am sure if it is 90% LTV that their mortgage insurance to cover the gap.

Don't forget to get insurance on the property asap.

If you put 25% down your paymebt would be $850 to $900 p&I, taxes and insurance would run about $300 per month, I doubt he pays for any utilities except you'll have mowing and maintenane plus a potential 8% vacancy rate.

Now you also have title chain, insurance and DOS risk on top of business risk.

We call it a "Debt Coverage Ratio" at my bank.

Apart from the mortgage, I would need to pay the homeowners insurance ($2,000) and homeowner's association fee ($500). 

My insurance went up about 3 times when I switched from standard property insurance to a STR policy ($1,200 a year to $3,400 a year).

Do you have E and O insurance to protect the agent?

When they do this, I set aside the appropriate amount for maintenance, capex and taxes and insurance.

If it were mine, I would pocket any insurance money and dump the property.