You want at least a 30% margin above costs and the NOI needs to be enough to pay the debt service after stabilization and then some.If the project looks feasible from a financial standpoint the next step is to check with the city or county planning and zoning department to get an idea if your concept will work, if you can build what you would like to build and what is required for all approvals including site plan, building permits, proffers, water/sewer tap fees, bonding requirements, inspections, setbacks, lot coverages, parking requirements, height restrictions, C/O process and time frame for all approvals.You also need to check with the utility companies and get an idea of availability and cost estimates from them for water, sewer, power, gas, cable, installation and connection requirements, tap fees, hookup charges, transformer location and relocation, power line and power pole relocation issues.

If your ratio gets too high, you will be cut off from lending.Also, take care to watch your DSCR (also known as DCR debt service coverage ratio). 

Contact your title insurance company to determine coverage and if your policy does cover transfers , and when or how.3.

You should have at least a 1.25 Debt Service Coverage Ratio.

Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild withthe same kind and quality excluding the foundation)2.

Because of recent changes in STR rules in JC, we need to have one of the JC buildings proved to be owner occupied and have a 500K liability insurance.Will an insurance company give coverage as primary residence for JC property where husband lives but I don't?

I recommend that you contact a professional financial advisor to create a comprehensive financial plan.

It does not cover every incident, but it does provide substantial coverage

@Charlene Stovin Others addressed most of your questions but regarding your concern about the creek - I would have a solid landlords insurance policy and an umbrella policy on top of that with whatever amount of liability coverage you would feel comfortable with. $1,2,3 million?

Lenders are now changing their programs to allow cash out and even long term debt pending the debt service coverage ratio (DSCR) of the property.