So if i understood correctly, these contractors are looking to live in the house? 

Generally week one would consist of securing the property,  starting utilities in the correct sequence according to season, insurance and any urgent repairs. 

@Samantha Soto @Casey J Burkhead is correct.  1 policy listing 2 buildings is the correct way to set it up.If there is a limit to the # of rentals, then you are working with Personal insurance policies. 

Is this a correct calculation for the loan amount?

Hey Tobey, that is correct.

Hey BP,So one of the HOA's that I own a rental in is trying to pass an amendment limiting rentals to 20% of the homes in the neighborhood and all tenants and leases have to be approved by the board of directors of the HOA.From all the research I have done on BP it seems like if this passes I am SOL, and probably will have to sell. is this a correct understanding?

It can also be difficult if not impossible to access if needed in the future and can vanish with a market correction.

I have never done one but I have known a couple people that have. you might want to call or email the Alabama department of revenue to get the correct procedure.

Even if you do all that correctly your electric bills may be so high you will lose tenants or on very cold days the apartment will never quite get warm enough.

You are correct, I am looking to cash out refi for an investment property and would absolutely not want to be spending more than I am putting in.