Full replacement vs cash value, basic coverage vs extended coverage, etc. 

Outside of that, there is no loan that could work for you due to the fact that you will owner occupy the home.If it were non-owner occupied, you could do a DSCR loan, or a Debt Service Coverage Ratio loan.

I might be breaking even some months but I work full time so can supplement if its ever needed. 

Cash out refi or commercial line of credit as long as your DSCR (Debt Service Coverage Ratio) is satisfactory to the bank - this is typically ~1.20

Hi, first time posting and working on my 2nd investment property (townhouse) and here's the catch:- Current policy ~1900US vs Citizens (~1,000)- Both DP3, same coverage I keep hearing horror stories about Citizens when you file a claim or when they audit your insurance, they may bump the price up, etc Any real life experience with them?

The owner reports profits, losses, and deductions on Schedule E, Supplemental Income and Loss, like an individual rental property owner along with IRS Form 1040.

@Shira Laux Definitely do your zone check first, then do a dep dive into the zoning ordinance for allowable height, stories, density, lot coverage, etc.

Would they be able to get a supplemental loan on top of the existing one and find ways to force value add?

Its a no income verification program designed for non owner occupied 1-4 unit properties and here's the kicker... we completely ignore debt coverage(DSCR), negative cash flow is not an issue as long as the property is leased and in good operating condition. 

I would be sure to get coverage with an ALTA 34 endorsement.