I refer to NYC as the "Wild West" of real estate because its so hot and there's so many pocket listings.

I would also call a couple of vacation rental companies in the area and tell them you are thinking about buying there and ask them what areas rent best, what size house you should get, what amenities you should put in (wifi, hot tub, pool table, etc).

Phoenix was quite the hot spot there for a while.

I never worried about the insurance that much since we did not have that much cash in it.. if we lost 10 to 30 k in a fire ( which never happened over a decade and over 100 of these so what.)your last sentence is where I have seen many many folks come to me to bail them out.. in very hot water.. some of them got turned into the AG.. not pretty.I would not do this thinking this is how you build long term holds. to me this is get into title value add sell make your dough pay the sellers mortgage off so they can go borrow again.. 

I was looking at this more from a liability perspective and what might be the min requirements to stay out of hot water.

I did not include:( Hopefully, I can get through the first year with minimal costs in that area because all appliances, carpet, hot water heater etc are brand new.

got a quick update for you guys.Had to put in a new furnace, central AC, and hot water heater.

I also just found out about heat pumps which run on electricity (as opposed to oil) that can pull heat out of the air.

Also, the inspection went really well with very minimal things to fix.purchase price $191,000 4 plex.25% down at 4.75% interest rate. monthly mortgage $1,150Total rent each month $2,350 with a on site laundry that brings in around $80 a monthunit 1 $550, unit 2 $575, unit 3 $600, unit 4 $625my water will average around $180 a monthcash flow is roughly going to be $1000 a month not including vacancy rate and repairsall four units are rented and the tenants want to stay. 3 out of the 4 tenants are all Air Force since it is close to a local base.Do I want to have all the tenants to sign a new lease?

I realize that Denver is a hot market (few days on market), I live here, but what if your buyers can't deliver.