Here is how it played out:Purchase $72kRehab $45kRefinancing/cash out at $125k with a note at $861 tax and insurance included.

Just make sure when you analyze the numbers to factor in all expenses (ie. maintenance, vacancy, CapEx, taxes, insurance, property management fees, etc).

Thats not a huge number but its something I could definitely work with assuming something doesn't go wrong like bad roof or plumbing (which owners says is in good condition).

Also, a home that costs $85K with 6.5% interest and 3.5% down would still be about $500+ per month on mortgage (depends on your credit score), and on top of that you'd have to pay insurance for having equity less than 20%. 

Thats not a huge number but its something I could definitely work with assuming something doesn't go wrong like bad roof or plumbing (which owners says is in good condition).

For investors who wanted to sit on the house and rent it there were the additional expenses of water insurance.   

__________Junkies also stole the copper plumbing.

They are a rental guarantee insurance company that helps tenants with less than stellar credit or people that just moved to the US without prior credit history.

@Giovanni Brown Get an inspection report plus get skilled tradespeople to inspect the plumbing, electrical, and HVAC if you suspect there are any problems, on an older home there might be.

Hi,I am about to become a first time landlord and was hoping someone could shed some light on what type of insurance I should be looking into for renting out a single family home.