Life happens

Do not do anything unusually b rbRight after you close on improved property get an insurance policy that will protect you if there is a loss.  

Insurance is so important, ask for a copy with whomever you plan of signing with. 

Closing costs: $3515 (3.5% down on FHA)Conventional 30 year @ 3.25%Income: Current rent: Lower 2BD $800 (rented MTM but I think I might be able to get $900)                     Upper 1BD $500 (I would occupy upper)Market Gross rents: $700-1200 2BDMonthly liabilities: Mortgage (P&I): $399Utilities: $150 Vacancy: $65 (5%) CapEx: $65 (5%) Insurance: $90 Repairs: $65 (5%) Property Management: Self managedProperty taxes: $408Total expenses: $1241Monthly cash flow~ $58.64/mo (Unless I can get $900 for rent then it would be ~$145/mo)My current rent is ~$500/mo with utilities.

Also good idea is to get a verification that they have their own workmen s comp insurance, so your not stuck if they get injured on your site, you simply ask them to have their insurance guy send you a certificate of insurance made out to you, for your address your having the work preformed at.

Then you would just add in the projected amount of utility costs and insurance.

Recent changes have some underwriters forcing PMI, if applied, for the life of the loan, so do everything possible to avoid it.View the payment differences 15 vs 30 yrs here

We put about $2500 and some sweat equity into the property before renting it out (some flooring, new dishwasher, new water heater, painting, etc).income: $1295expenses: $108 vacancy (guess), $283 HOA fee, $161 property tax, $14 insurance, $130 repairs / updates (guess), $480 mortgagecashflow = $119And that doesn't take management into account, which so far we'll try to do ourselves (from NH -- I know that's iffy, but we did find a high quality tenant so we're hoping that not too much will happen).

Insurance is roughly $1,000/year.

LOLYou didn't share what type of investment property you will be purchasing.Little residential houses do not blend well with lenders or insurers.