I’ve recently retired from the auto business after 28 years .

I need to get it insured but having a hard time finding insurers for vacant properties.

Value 1.3 MillionObvious expenses Taxes, Insurance,  allocating 12% to maintenance.

I am going to owner occupy the 2 bedroom unit and that will be in the purchase agreement for it to be vacant upon closing, I am using FHA financing, The current seller loves the 2 tenants renting the 3 bedrooms and was very relieved when he heard I wanted the 2 bedroom vacant, I'm hoping the current long term tenants have done there research and expect the rents to be raised because they have been there for 10 years and 20 years, Each unit just has separate washer N dryer hook ups, one of the 3 bedrooms has a garage bay and storage included in the rent (640-690/month) and the other 3 bedroom has a large storage unit included in the rent (640-690/mo) I would like to get at least 1k/mo per unit which would make the place cashflow, mortgage will be 1400-1500/mo which includes everything insurance, pmi, taxes etc.

(of course this can be remedied with title insurance which is part of your vetted team)2) Don't understand the Time Value of Money and how discount, terms, face rate of the note, an time all play into calculating a true yield, ROI or Internal Rate of Return. 3) Don't want to put effort into researching and fact checking before presenting a deal for consideration.

So I closed on on the property last Friday and discovered in my closing  disclosure I was going  to PAY for Title Insurance,  Settlement fee, title search fees and lean search fee which racked up about another 1k on top of my 15k of commissions. when I questioned why I was paying this my realtor said it that is this was normal practice for the seller to pay this??

They come with their own tools, experience, insurance, licensing, and continuing education.

Have talked to a few and they are willing to lend on the property, the concern is that with such a high commercial %  that MI company won't insure.   

On a rental, find what the property would rent for per month, multiply it by 12 (annual Income) and then subtract taxes, insurance, holding costs, (whatever else you account for) and divide by your offer price to get your net ROI.

. - Title Company:: In the purchase agreement the seller should be required to provide an owners title policy insurance.