This is why it is important to have a competent CPA on your team who understands estate/trust/gift taxes in addition to business taxes.

Three years later appreciation has given me an additional $70,000 in equity, my tenants have paid down my debt $10,000 on top of that.

The problem is that I have been self employed for 1 1/2 years and wont qualify for a bank loan.

If you find yourself tempted to purchase additional levels of training remember that the "special, limited, early-bird, one-time" offer is going to be heavily discounted by the end of the seminar. 

(search her posts here on BP, look up her personal website/blog for the success story.Or here's three successes I enjoyed reading about...using BRRRR (Two did it solo as couples, One admittedly used a partner).....see if you get additional inspiration from their success of @Joshua D. , @William Collins and @Austin Fruechting did in 5, 2.5 years and 7 years, respectively, buy using BRRRR (Austin was also featured in BP Podcast #239)https://www.biggerpockets.com/forums/223/topics/459415-500k-net-worth-in-5-years-im-30-today?

I am in the midst of a mostly cosmetic rehab but with the addition of a new hvac system.

The insurance names the city as an additional insured.

if they don’t make much money and are on  Section 8, they are not collectible.If a tenant has been employed for more than a year, they most likely won’t leave their jobs, and their credit may be okay.  

Invest it in a syndicated apartment deal, and you might get a 6% preferred return ($5,000 per month) plus 2/3 of the additional profits, plus all those lovely tax write offs, plus another big kick when the property sells.

Take some time to call previous landlords and your applicant's place of employment.