Once you have all the info the only thing I can provide is doc checks of trades you wish to hire; to insure you are properly protected during and after the job.

Have referral for prop manager but haven't contacted yet.Close expected 1st-2nd week of July.I think my next steps is to contact an insurance company to get my property insured. 

I'm going to call my insurance, but it seems like the tenant should be liable for some of the cost.

If you don't at least break even with all your necessary expenses (insurance, maintenance, management, etc.), you're fooling yourself, like so many others I consult with, that Airbnb can be a fun and great income idea.

Does he needs to provide insurance for his employees?

You can pay points to get lower interest rates with > 20% down no insurance.

.- Get the most expensive insurance policy your carrier offers, since you will be paying the first 12 months upfront.

A few things to keep in mind when owning the property and allowing this is to cover yourself with the right insurance.

Here are some preliminary numbers I ran: 260K FHA no repairs and current rents on left, 300K 203K, reno and higher rents on right: % Down Payment 5.00% 5.00% Down Payment $13,000 $15,000 Remainder of closing costs $3,000.00 $3,000.00 Total Due at Signing $16,000 $18,000            Mortgage Rate 4.60% 4.60% Length of Mortgage in years 30 30 Monthly Mortgage payment $1,266.00 $1,461.00 Taxes $386.00 $445.00 Sewer and Water $50.00 $50.00 Trash $50.00 $50.00 Heat/Utilities $ - $ - PMI $ 180.00 $ 208.00 Cap Ex and Ops $200.00 $200.00 Insurance $65.00 $75.00 Mgmt Fee $165.00 $165.00 Vacancy $132.00 $132.00 Total Expenses $2,494.00 $2,786.00     Unit 1 $500.00 $700.00 Unit 2 $900.00 $1,100.00     Total Revenue $1,400.00 $1,800.00     Cashflow/month ($1,094.00) ($986.00) Cashflow/year ($13,128.00) ($11,832.00) Cash on Cash Return -8.42% -6.57% I have not talked with the seller in detail yet, as I want to see if this is worth a deeper dive first. 

In addition, I would strongly recommend requiring renter's insurance for your tenants.