Think of it this way...Just buying a rental property = 400.00 cash flow + 400 equity each month = 800.00 a month increase in worth.

I would be careful about always filing claims for rate increases and or dropped coverage.

I plan to refinance those 3 properties in 3-5 years and hopefully acquire 3 more properties with the proceeds, which will of course increase my cash flow even more and get me a step closer to financial freedom.

ALWAYS make clear title a condition of closing.6.

As you collect rent throughout the year and or years you will be increasing your capital/reserves.

Depending on the type of loan (conventional versus FHA), they have very specific requirements for the condition of the property - from the age of the roof to the condition of the paint. 

and if it get fixed up to a top condition will i be able to have great tenenets there ?

The property was brought back to better than original luxury status, therefore increasing my rental prices from $950 to $1200 per month.

It will come at a cost of fees and some time though.Now umbrella insurance and liability insurance on the property is definitely an obtain and increasing the policy increases your protection but one thing that is always unknown is how much a claim will be. 

We purchased the property with a conventional loan and 5% down, 30 year, and a PMI obviously.We are doing some significant updates and upgrades that will increase property value.